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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Definitions:

Not-for-Profit Organizations

Organizations that operate for purposes other than generating profit, focusing on social, educational, or charitable objectives.

Formal Structures

Organized frameworks in businesses and organizations characterized by defined rules, roles, and responsibilities intended to achieve efficiency and goals.

Free-Rein Leaders

Leadership style where authority is delegated to employees, empowering them to make decisions and solve problems independently.

Subordinates

Employees or team members who are lower in rank or position and report to someone higher in the organizational hierarchy.