ABC tour company uses two measures of activity, routes and passengers in its cost formulas used for budgeting and performance evaluation. The cost formula for tour operating costs is $56,880 per month plus $2,884 per route plus $16 per passenger. The company expected in August to perform 87 routes and serve 259 passengers, but the actual activity was 96 routes and 267 passengers. The actual tour operating costs in August was $305,100. The spending variance for tour operating costs in August would be closest to:

a.) $32,916 Favorable

b.) $6,832 Unfavorable

c.) $26,084 Favorable

d.) $6,832 Favorable

e.) $32,916 Unfavorable