Question
Herrod Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering
Herrod 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 $540 per month plus $103 per job plus $34 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 December to be 11 jobs and 120 meals, but the actual activity was 6 jobs and 125 meals. The actual cost for catering supplies in December was $5,230. The spending variance for catering supplies in December would be closest to:
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