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

question 52

Multiple Choice

Portsche Snow Removal's cost formula for its vehicle operating cost is $2,310 per month plus $317 per snow-day. For the month of November, the company planned for activity of 18 snow-days, but the actual level of activity was 20 snow-days. The actual vehicle operating cost for the month was $8,730. The activity variance for vehicle operating cost in November would be closest to:

• A) $714 U
• B) $714 F
• C) $634 F
• D) $634 U

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Definitions:

Sweater

A knitted garment typically made of wool, cotton, or synthetic yarn, worn over the upper body to provide warmth.

0.51%

A percentage, typically representing an interest rate, dividend yield, or other financial ratio indicating a small change or amount.

Sum of Money

An amount of money expressed as a total figure, without specifying denominations or breakdown.

Increased

A term that signifies a rise in quantity or quality, often used in financial and statistical contexts.