Question
Sissac Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering
Sissac Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $620 per month plus $111 per job plus $27 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in May to be 19 jobs and 128 meals, but the actual activity was 14 jobs and 133 meals. The actual cost for catering supplies in May was $5,550. The spending variance for catering supplies in May would be closest to
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