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

Question 52

Multiple Choice

Portsche Snow Removal's cost formula for its vehicle operating cost is $2,310 per month plus $317 per snow-day. For the month of November, the company planned for activity of 18 snow-days, but the actual level of activity was 20 snow-days. The actual vehicle operating cost for the month was $8,730. The activity variance for vehicle operating cost in November would be closest to:


A) $714 U
B) $714 F
C) $634 F
D) $634 U

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