speedy snow removal's cost formula for its vehicle operating cost is $3,080 per month plus $338 per snow-day. for the month of january, the company planned for activity of 20 snow-days, but the actual level of activity was 22 snow-days. the actual vehicle operating cost for the month was $10,130. the spending variance for vehicle operating cost in january would be closest to:

Respuesta :

The spending variance for vehicle operating cost in January would be closest to $386 U

Calculation to determine what The spending variance for vehicle operating cost in January would be closest to:

Actual results $10,130

Less Flexible budget $10,516

($3,080+($338 per*22 snow-days)

Spending variance $386 Unfavorable

Therefore The spending variance for vehicle operating cost in January would be closest to:

$386 Unfavorable

What is variable cost?

Costs that vary according on how much of a good or service a company produces are known as variable costs. The total of marginal costs across all units produced represents variable costs. They may also be regarded as typical expenses. The two elements of total cost are fixed costs and variable costs.

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