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 $470 per month plus $107 per job plus $27 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 17 jobs and 127 meals, but the actual activity was 11 jobs and 134 meals. The actual cost for catering supplies in March was $5,100. The spending variance for catering supplies in March would be closest to: |
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