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

question 292

Multiple Choice

Lesinski Snow Removal's cost formula for its vehicle operating cost is $1,770 per month plus $483 per snow-day. For the month of February, the company planned for activity of 19 snow-days, but the actual level of activity was 24 snow-days. The actual vehicle operating cost for the month was $13,070. The spending variance for vehicle operating cost in February would be closest to:

• A) $2,123 U
• B) $292 F
• C) $2,123 F
• D) $292 U

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Definitions:

Rational-Legal Authority

A form of leadership where authority is largely tied to legal rationality, legal legitimacy, and bureaucracy.

Bureaucracies Formation

The process of establishing a system or complex of officials and procedures for managing an organization or government.

Weber

A reference to Max Weber, a key figure in sociology known for his analysis of social structures, the development of bureaucracies, and the study of religion and capitalism.

PACs

PACs, or Political Action Committees, are organizations that collect funds to donate to political campaigns, candidates, and parties in order to influence elections and policy decisions.