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Holiday Company prepares packed lunches for hikers in Yosemite. Hikers order their lunches by 10 pm and their lunch is left at their hotel room

Holiday Company prepares packed lunches for hikers in Yosemite. Hikers order their lunches by 10 pm and their lunch is left at their hotel room door in a re-useable insulated bag by 5 am the following morning. Holiday budgeted 5,000 lunches for July and each lunch requires 0.50 process hours. Holiday's static budget for electricity for the month is $3,000. Actual sales, process hours, and electricity cost totaled 5,100 lunches, 2,480 PH, and $3,040, respectively. If the company used a static budget for performance evaluations, Holiday would report a cost variance of:

Multiple Choice

  • $24U.
  • $24F.
  • $40U.
  • $40F.
  • None of the answers is correct.

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