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Please see attached Q 2 JAR-521 tour company uses two measures of activity. routes and passengers in its cost formulas used for budgeting and performance
Please see attached Q 2
JAR-521 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 $2,880 per route plus $16 per passenger. The company expected In August to perform 86 routes and serve 259 passengers, but the actual activity was 97 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: Multiple Choice O $35,360 Favorable O $3.584 Favorable O $3,584 Unfavorable O $35,360 Unfavorable O $31,776 FavorableStep by Step Solution
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