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JAR-700 tour company uses two measures of activity, routes and passengers in its cost formulas used for budgeting and performance evaluation. The cost formula for

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JAR-700 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 $56,900 per month plus $2,878 per route plus $17 per passenger. The company expected in August to perform 87 routes and serve 259 passengers, but the actual activity was 92 routes and 262 passengers. The actual tour operating costs in August was $305,300. The spending variance for tour operating costs in August would be closest to: Multiple Choice $21,030 Favorable $14,441 Favorable $6,589 Unfavorable $6,589 Favorable $21,030 Unfavorable

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