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1. L esinski Snow Removal\'s cost formula for its vehicle operating cost is $1,7

ID: 2378656 • Letter: 1

Question

1.    Lesinski Snow Removal's cost formula for its vehicle operating cost is $1,770 per month plus $483 per snow-day. For the month of February, the company planned for activity of 19 snow-days, but the actual level of activity was 24 snow-days. The actual vehicle operating cost for the month was $13,070. The spending variance for vehicle operating cost in February would be closest to:

$2,123 U

$292 F

$2,123 F

$292 U

  

$2,123 U

     

$292 F

     

$2,123 F

     

$292 U

   Lesinski Snow Removal's cost formula for its vehicle operating cost is $1,770 per month plus $483 per snow-day. For the month of February, the company planned for activity of 19 snow-days, but the actual level of activity was 24 snow-days. The actual vehicle operating cost for the month was $13,070. The spending variance for vehicle operating cost in February would be closest to:

Explanation / Answer

B.)) $292F IS CORRECT ANSWER