Question
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 $56,890 per month plus $2,878 per route plus $13 per commuter. The company expected its activity in November to be 89 routes and 260 commuters, but the actual activity was 96 routes and 269 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 what and is favorable or unfavorable?:
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