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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 $56,870 per month plus $2,874 per route plus 14 per commuter. The company expected its activity in November to be 87 routes and 259 commuters, but the actual activity was 93 routes and 264 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 Multiple Choice $5,434 Unfavorable $22,748 Unfavorable $17,314 Favorable $22748 Favorable $5,434 Favorable
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