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

Question 292

Multiple Choice

Lesinski Snow Removal's cost formula for its vehicle operating cost is $1,770 per month plus $483 per snow-day. For the month of February, the company planned for activity of 19 snow-days, but the actual level of activity was 24 snow-days. The actual vehicle operating cost for the month was $13,070. The spending variance for vehicle operating cost in February would be closest to:


A) $2,123 U
B) $292 F
C) $2,123 F
D) $292 U

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