JAR-174 tour company uses two measures of activity, routes and passengers in its cost formulas used for budgeting and performance evaluation. The cost formula for tour operating costs is $56,850 per month plus $2,884 per route plus $18 per passenger. The company expected in August to perform 89 routes and serve 255 passengers, but the actual activity was 95 routes and 270 passengers. The actual tour operating costs in August was $305,100. The spending variance for tour operating costs in August would be closest to: Multiple Choice O $17,574 Favorable $30,590 Favorable $30,590 Unfavorable

JAR-174 tour company uses two measures of activity, routes and passengers in its cost formulas used for budgeting and performance evaluation. The cost formula for tour operating costs is $56,850 per month plus $2,884 per route plus $18 per passenger. The company expected in August to perform 89 routes and serve 255 passengers, but the actual activity was 95 routes and 270 passengers. The actual tour operating costs in August was $305,100. The spending variance for tour operating costs in August would be closest to: Multiple Choice O $17,574 Favorable $30,590 Favorable $30,590 Unfavorable

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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