Herrod Catering uses two measures of activity, jobs and meals, in the cost formulas in its budgets and performance reports. The cost formula for catering supplies is $570 per month plus $98 per job plus $24 per meal. A typical job involves serving a number of meals to guests at a corporate function or at a host's home. The company expected its activity in December to be 11 jobs and 98 meals, but the actual activity was 14 jobs and 102 meals. The actual cost for catering supplies in December was $4,500. The spending variance for catering supplies in December would be closest to:

A. $500 U
B. $500 F
C. $110 U
D. $110 F


Answer: C

Business

You might also like to view...

Which of the following accounts has a normal credit balance?

A) Sales Returns and Allowances B) Sales C) Merchandise Inventory D) Delivery Expense

Business

In the context of debt financing, if a firm invests the borrowed funds profitably, the use of debt can improve the _____ to the shareholders by not diluting existing shares of stock.

A. total contract value B. resource rent C. return on equity D. gross profit

Business

On an amortization schedule, more interest and less principal is paid each month as the loan matures

Indicate whether the statement is true or false.

Business

Stakeholders have been able to form international coalitions more successfully through use of:

A. Communications technology. B. Unions. C. Government regulation. D. Community involvement.

Business