Cadavieco Detailing's Cost Formula for Its Materials and Supplies Is

question 247

Multiple Choice

Cadavieco Detailing's cost formula for its materials and supplies is $1,990 per month plus $8 per vehicle. For the month of November, the company planned for activity of 92 vehicles, but the actual level of activity was 52 vehicles. The actual materials and supplies for the month was $2,440.
-The activity variance for materials and supplies in November would be closest to:

• A)$320 U
• B)$286 U
• C)$286 F
• D)$320 F

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Definitions:

Corporate Social Responsibility

Refers to business practices involving initiatives that benefit society and demonstrate care for the environmental and social impacts of a company's operations.

Credit Risk

The risk that a borrower will not repay a loan according to the terms, leading to a financial loss for the lender.

Accounting Method

A set of rules used to determine when and how income and expenses are reported in the financial statements, such as cash basis or accrual basis accounting.

Retained Earnings

Retained earnings refer to the portion of net income left over after dividends are paid out to shareholders, which is reinvested into the company.