Jazz 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 $56,850 per month plus $2,888 per route plus $18 per passenger. The company expected in August to perform 89 routes and serve 258 passengers, but the actual activity was 97 routes and 269 passengers. The actual tour operating costs in August was $305,100. The spending variance for tour operating costs in August would be closest to:

Multiple Choice

$36,728 Unfavorable

$13,426 Unfavorable

$36,728 Favorable

$13,426 Favorable

$23,302 Favorable