Dermody Snow Removal's cost formula for its vehicle operating cost is $2,930 per month plus $323 per
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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, the company planned for an 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:
a. $279 U
b. $279 F
c. $602 U
d. $602 F
Related Book For
Cornerstones of Cost Management
ISBN: 978-1285751788
3rd edition
Authors: Don R. Hansen, Maryanne M. Mowen
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