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

Multiple Choice

Orscheln Snow Removal's cost formula for its vehicle operating cost is $2,800 per month plus $381 per snow-day.For the month of February,the company planned for activity of 17 snow-days,but the actual level of activity was 14 snow-days.The actual vehicle operating cost for the month was $7,920.The activity variance for vehicle operating cost in February would be closest to:

A) $1,357 F
B) $1,357 U
C) $1,143 F
D) $1,143 U