Question
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:
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$28,776 Favorable
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$11,380 Unfavorable
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$28,776 Unfavorable
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$11,380 Favorable
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$17,396 Favorable
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