Activity variance for vehicle operating cost


Portsche Snow Removal's cost formula for its vehicle operating cost is $2,310 per month plus $317 per snow-day. For the month of November, the company planned for activity of 18 snow-days, but the actual level of activity was 20 snow-days.

The actual vehicle operating cost for the month was $8,730. The activity variance for vehicle operating cost in November would be closest to:

A. $714 U

B. $714 F

C. $634 F

D. $634 U

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Accounting Basics: Activity variance for vehicle operating cost
Reference No:- TGS075466

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