Dermody Snow Removal's cost formula for its vehicle operating cost is $2,900 per month plus $320 per snow-day. For the month of December, the company planned for activity of 15 snow-days, but the actual level of activity was 13 snow- days. The actual vehicle operating cost for the month was $7,980. The spending variance for vehicle operating cost in December would be closest to:
Dermody Snow Removal's cost formula for its vehicle operating cost is $2,900 per month plus $320 per snow-day. For the month of December, the company planned for activity of 15 snow-days, but the actual level of activity was 13 snow- days. The actual vehicle operating cost for the month was $7,980. The spending variance for vehicle operating cost in December would be closest to:
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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![Dermody Snow Removal's cost formula
for its vehicle operating cost is $2,900
per month plus $320 per snow-day. For
the month of December, the company
planned for activity of 15 snow-days, but
the actual level of activity was 13 snow-
days. The actual vehicle operating cost
for the month was $7,980. The spending
variance for vehicle operating cost in
December would be closest to:](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F393f50af-cc90-4d35-ab26-4795788cf06f%2F89b23a1d-1c9b-4be7-82a4-1266b965309c%2F5bhpizf_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Dermody Snow Removal's cost formula
for its vehicle operating cost is $2,900
per month plus $320 per snow-day. For
the month of December, the company
planned for activity of 15 snow-days, but
the actual level of activity was 13 snow-
days. The actual vehicle operating cost
for the month was $7,980. The spending
variance for vehicle operating cost in
December would be closest to:
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