The Latiker commuter bus 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 $56,880 per month plus $2,884 per route plus $16 per commuter. The company expected its activity in November to be 87 routes and 259 commuters, but the actual activity was 94 routes and 265 commuters. The actual cost for bus operating costs in November was $305,100. The spending variance for bus operating costs in November would be closest to:
The answer has been presented in the supporting sheet. For detailed answer refer to the supporting sheet.
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