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

question 238

Multiple Choice

Dermody Snow Removal's cost formula for its vehicle operating cost is $3,010 per month plus $331 per snow-day. For the month of December, the company planned for activity of 13 snow-days, but the actual level of activity was 15 snow-days. The actual vehicle operating cost for the month was $7,585. The spending variance for vehicle operating cost in December would be closest to:

• A) $272 U
• B) $272 F
• C) $390 F
• D) $390 U

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Definitions:

Assign Tasks

The process of allocating specific duties or responsibilities to individuals or teams within an organization.

Nonfinancial Performance

Measures of an organization's success not directly related to financial gains, such as customer satisfaction, employee engagement, and environmental impact.

GAAP or IFRS

Standards and principles that provide the framework for financial accounting and reporting, with GAAP used in the United States and IFRS internationally.

Objectivity and Verifiability

Accounting principles emphasizing the importance of unbiased financial information and the ability to confirm the accuracy of this data.