Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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 $56,890 per month plus $2,876 per route plus $14 per commuter. The company expected its activity in November to be 89 routes and 259 commuters, but the actual activity was 95 routes and 269 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:

  • $28,776 Favorable

  • $11,380 Unfavorable

  • $28,776 Unfavorable

  • $11,380 Favorable

  • $17,396 Favorable

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Internal Quality Systems Auditing

Authors: Paul F. Lewis

1st Edition

1570744076, 978-1570744075

More Books

Students also viewed these Accounting questions

Question

a. Describe the encounter. What made it intercultural?

Answered: 1 week ago