contestada

Dermody Snow Removal's cost formula for its vehicle operating cost is $2,960 per month plus $326 per snow-day. For the month of December, the company planned for activity of 20 snow-days, but the actual level of activity was 18 snow-days. The actual vehicle operating cost for the month was $9,770. The spending variance for vehicle operating cost in December would be closest to: rev: ________

a. $290 U
b. $290 F
c. $942 U

Respuesta :

Tundexi

Answer:

c. $942 U

Explanation:

Spending variance = Standard cost at 20 snow days - Actual operating cost.

Spending variance = [$2,960 + ($326*18)] - $9,770

Spending variance = $8,828 - $9,770

Spending variance = $942 (Unfavorable).

Note: The actual level of activity = 18 snow-days.

Otras preguntas