Ask Question
26 September, 21:08

Dermody Snow Removal's cost formula for its vehicle operating cost is $2,930 per month plus $323 per snow-day. For the month of December, the company planned for activity of 17 snow-days, but the actual level of activity was 16 snow-days. The actual vehicle operating cost for the month was $8,700. The spending variance for vehicle operating cost in December would be closest to: rev: 11_08_2017_QC_CS-108685, 11_29_2017_QC_CS-110702 Multiple Choice $279 U $279 F $602 U

+4
Answers (1)
  1. 26 September, 21:13
    0
    602 U

    Explanation:

    Dermody Snow Removal's

    Vehicle operating cost is $2,930 per month plus $323 per snow-day

    Actual level of activity was 16 snow-days

    Spending variance for vehicle operating cost = Flexible budget-actual

    Hence;

    = (323*16+2930) - 8,700

    = (5,168+2,930) - 8,700

    =8,098-8,700

    =602 U

    Therefore the spending variance for vehicle operating cost in December would be closest to 602 U
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 $2,930 per month plus $323 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