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JAR-829 tour company uses two measures of activity, routes and passengers in its cost formulas used for budgeting and performance evaluation. The cost formula for
JAR-829 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 $56,880 per month plus $2,884 per route plus $15 per
passenger. The company expected in August to perform 90 routes and serve 255 passengers, but the actual activity was 98 routes and 265 passengers. The actual tour operating costs in August was $305,100. The spending variance for tour operating
costs in August would be closest to:
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