Question

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 $550 per month plus $104 per job plus $20 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 12 jobs and 121 meals, but the actual activity was 7 jobs and 126 meals. The actual cost for catering supplies in December was $3,550. The spending variance for catering supplies in December would be closest to:

Answer 1

Answer:

$148 F

Explanation:

Calculation to determine what The spending variance for catering supplies in December would be closest to:

Flexible budget $3,698

[$550 + ($104 * 7) + ($20 * 121)]

Less Actual results $3,550

Spending variance $148 F

Therefore The spending variance for catering supplies in December would be closest to: 148 F