Ask Question
11 August, 12:18

Dermody Snow Removal's cost formula for its vehicle operating cost is $3,040 per month plus $334 per snow-day. For the month of December, the company planned for activity of 16 snow-days, but the actual level of activity was 18 snow-days. The actual vehicle operating cost for the month was $8,660. The spending variance for vehicle operating cost in December would be closest to:

A. 276 U

B. 276 F

C. 392 F

D. 392 U

+5
Answers (1)
  1. 11 August, 12:30
    0
    spending variance = 392 favorable

    Explanation:

    Giving the following information:

    Dermody Snow Removal's cost formula for its vehicle operating cost is $3,040 per month plus $334 per snow-day. For December, the company planned for activity of 16 snow-days, but the actual level of activity was 18 snow-days. The actual vehicle operating cost for the month was $8,660.

    spending variance = (standard rate - actual rate)

    spending variance = [ (3,040 + 334*18) - 8660] = 392 favorable
Know the Answer?
Not Sure About the Answer?
Get an answer to your question ✅ “Dermody Snow Removal's cost formula for its vehicle operating cost is $3,040 per month plus $334 per snow-day. For the month of December, ...” in 📙 Business if there is no answer or all answers are wrong, use a search bar and try to find the answer among similar questions.
Search for Other Answers