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VAR-972 commuter bus company uses two measures of activity, routes and commuters, in the cost formulas in its budgets and performance reports. The cost formula

VAR-972 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 $2,884 per route plus $14 per commuter. The company expected its activity in November to be 90 routes and 257 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:

Multiple Choice

  • $14,560 Favorable

  • $14,908 Unfavorable

  • $29,468 Unfavorable

  • $14,908 Favorable

  • $29,468 Favorable

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