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The Latiker commuter bus company uses two measures of activity, routes and commuters, in the cost formulas in its budgets and performance reports. The cost
The Latiker commuter bus company uses two measures of activity, routes and commuters, in the cost formulas in its budgets and performance reports. The cost formula for bus operating costs is $56,860 per month plus $2,888 per route plus $15 per commuter. The company expected its activity in November to be 87 routes and 255 commuters, but the actual activity was 97 routes and 268 commuters. The actual cost for bus operating costs in November was $305,100. The spending variance for bus operating costs in November would be closest to: Multiple Choice $6,841 Unfavorable $35,916 Favorable $6,841 Favorable $29,075 Favorable $35,916 Unfavorable
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