Answer:
$1,707 Favorable
Explanation:
The variance will be the difference between the planned budget and the actual costs.
Variable costs are budgeted at $3.30 per customer visit, and fixed costs are $10,600 per month. There were 990 customer visits.
The variable cost budget will be
=$3.30 x 990
=$3,267
Fixed budget is $10,600
Total budget
= $10,600 + $3,267
=$13,867
the actual expenditure was
variable cost= $3,380
fixed costs=$8,780
total actual costs = $3,380 +$8,780
= $12,160
variance = $13,867 - $12,160
=$1,707