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

question 217

Multiple Choice

Fudala Snow Removal's cost formula for its vehicle operating cost is $1,480 per month plus $308 per snow-day.For the month of March,the company planned for activity of 11 snow-days,but the actual level of activity was 16 snow-days.The actual vehicle operating cost for the month was $6,130.The spending variance for vehicle operating cost in March would be closest to:

• A)$1,262 U
• B)$278 F
• C)$278 U
• D)$1,262 F

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Definitions:

Mutual Adjustment

is a mechanism of coordination among team or group members, where adjustments and adaptations are made through informal communication.

Integrator

An individual or tool that combines or coordinates separate elements or structures into a unified whole.

Standardization of Work Processes

The practice of implementing uniform procedures and criteria in organizational tasks to improve efficiency and quality.

Labour Coordination

The process of organizing and managing a workforce in order to achieve efficient production and meet organizational objectives.