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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 $56,860 per month plus $2,888 per route plus $16 per commuter. The company expected its activity in November to be 86 routes and 258 commuters, but the actual activity was 93 routes and 267 commuters. The actual cost for bus operating costs In November was $305,100. The spending varlance for bus operating costs in November would be closest to: Multiple Choice $4,256 Unfavorable $4,256 Favorable $24,616 Unfavorable $20,360 Favorable $24,616 Favorable
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