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 $56,900 per month plus $2,880 per route plus $13 per commuter. The company expected its activity in November to be 90 routes and 258 commuters, but the actual activity was 98 routes and 266 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
$14,354 Favorable
$37,498 Unfavorable
$23,144 Favorable
$14,354 Unfavorable
$37,498 Favorable
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