Question
Hejl Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering
Hejl Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $500 per month plus $110 per job plus $30 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in March to be 20 jobs and 130 meals, but the actual activity was 14 jobs and 137 meals. The actual cost for catering supplies in March was $5,950. The spending variance for catering supplies in March would be closest to:
$650 U
$650 F
$200 U
$200 F
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