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

question 338

Multiple Choice

Dermody Snow Removal's cost formula for its vehicle operating cost is $2,850 per month plus $317 per snow-day. For the month of December, the company planned for activity of 16 snow-days, but the actual level of activity was 14 snow-days. The actual vehicle operating cost for the month was $7,640. The spending variance for vehicle operating cost in December would be closest to:

• A) $282 U
• B) $282 F
• C) $352 U
• D) $352 F

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