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The Wilfred Heiilm train company uses two measures of activity, routes and commuters, in the cost...

The Wilfred Heiilm train company uses two measures of activity, routes and commuters, in the cost formulas in its budgets and performance reports. The cost formula for bus operating costs is $56,840 per month plus $2,890 per route plus $14 per commuter. The company expected its activity in November to be 89 routes and 259 commuters, but the actual activity was 96 routes and 265 commuters. The actual cost for Train operating costs in November was $305,100. The spending variance for train operating costs in November would be closest to:

Answer Choices:

A $32,890 Favorable

B $12,576 Unfavorable

C $20,314 Favorable

D $12,576 Favorable

E $32,890 Unfavorable

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