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JAR. 440 tour company uses two measures of activity. routes and passengers in its cost formulas used for budgeting and performance evaluation. The cost formula
JAR. 440 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 $56,860 per month plus $2,876 per route plus $16 per passenger. The company expected in August to perform 86 routes and serve 256 passengers, but the actual activity was 98 routes and 269 possengers. The actual tout operating costs in August was $305,100. The spending variance for tour operating costs in August would be closest to: Multiplo Cholice 523.532 Unavorable 53,192 Favorable 520,340 Finorable $23.532 Favorable
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