Taussig Snow Removal's Cost Formula for Its Vehicle Operating Cost

question 355

Multiple Choice

Taussig Snow Removal's cost formula for its vehicle operating cost is $1,880 per month plus $394 per snow-day. For the month of February, the company planned for activity of 13 snow-days, but the actual level of activity was 14 snow-days. The actual vehicle operating cost for the month was $7,250. The activity variance for vehicle operating cost in February would be closest to:

• A) $394 F
• B) $248 U
• C) $394 U
• D) $248 F

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