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