Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Snowwhite Removal removes snow and cleans roads and driveways in Vermont. Their cost formula is given below. For the month of February, the company planned
Snowwhite Removal removes snow and cleans roads and driveways in Vermont. Their cost formula is given below. For the month of February, the company planned for activity of 17 snow-days. The actual vehicle operating cost for the month was $9,920. The actual level of activity was 13 snow-days.
Correct answer is (C) $1,684 Favorable. Show clear calculations and formula used. Keep it simple. Explain to me why it is favorable.
Snowwhite Removal removes snow and cleans roads and driveways in Vermont. Their cost formula is given below. For the month of February, the company planned for activity of 17 snow-days. The actual vehicle operating cost for the month was $9,920. The actual level of activity was 13 snow-days. $ 3,100 Fixed cost per month Variable cost 421.00 per day What is the activity variance for total cost? A. 1,347.00 favorable B. $1,347.00 unfavorable C. 1,684.00 favorable D. $1,684.00 unfavorable E. None of the above 3Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started