Answered step by step
Verified Expert Solution
Question
1 Approved Answer
A commuter bus company uses two measures of activity, routes and commuters, in the cost formulas in its budgets and performance reports. The cost formula
A commuter bus company uses two measures of activity, routes and commuters, in the cost formulas in its budgets and performance reports. The cost formula for bus operating costs is $56,860 per month plus $2,882 per route plus $17 per commuter. The company expected its activity in November to be 87 routes and 255 commuters, but the actual activity was 94 routes and 265 commuters. The actual cost for bus operating costs in November was $305,100. The spending variance for bus operating costs in November would be closest to:
a) 6,829 favorable
b) 6,829 unfavorable
c) 21173 favorable
d) 20344 favorable
e) 27173 unfavorable
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started