shadowhawk999 shadowhawk999

25-05-2023
Business

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JAR-973 tour company uses two measures of activity, routes and passengers in its cost formulas used for budgeting and performance evaluation. The cost formula for tour operating costs is $56,850 per month plus $2,886 per route plus $16 per passenger. The company expected in August to perform 87 routes and serve 258 passengers, but the actual activity was 94 routes and 263 passengers. The actual tour operating costs in August was $305,100. The spending variance for tour operating costs in August would be closest to: Multiple Choice
A. $20,282 Favorable
B. $27,242 Favorable
C. $27,242 Unfavorable
D. $6.960 Unfavorable
E. $6,960 Favorable

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