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

question 38

Multiple Choice

Ishibashi Snow Removal's cost formula for its vehicle operating cost is $1,240 per month plus $337 per snow-day. For the month of February, the company planned for activity of 17 snow-days, but the actual level of activity was 12 snow-days. The actual vehicle operating cost for the month was $5,140. The spending variance for vehicle operating cost in February would be closest to:

• A)$144 U
• B)$1,829 U
• C)$1,829 F
• D)$144 F

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