Sissac Catering Uses Two Measures of Activity,jobs and Meals,in the Cost

question 143

Multiple Choice

Sissac Catering uses two measures of activity,jobs and meals,in the cost formulas in its budgets and performance reports.The cost formula for catering supplies is $470 per month plus $101 per job plus $24 per meal.A typical job involves serving a number of meals to guests at a corporate function or at a host's home.The company expected its activity in May to be 12 jobs and 123 meals,but the actual activity was 9 jobs and 126 meals.The actual cost for catering supplies in May was $4,240.The spending variance for catering supplies in May would be closest to:

• A)$394 U
• B)$394 F
• C)$163 F
• D)$163 U

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Definitions:

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