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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 $56,850 per month plus $2,886 per route plus $16 per commuter. The company expected its activity in November to be 88 routes and 258 commuters, but the actual activity was 95 routes and 267 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:

  • $9,846 Favorable

  • $20,346 Favorable

  • $30,192 Favorable

  • $30,192 Unfavorable

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