Cadavieco Detailing: calculate spending variance in a month
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Question
Cadavieco Detailing's cost formula for its materials and supplies is $2,000 per month plus $5 per vehicle. For the month of November, the company planned for activity of 95 vehicles, but the actual level of activity was 55 vehicles. The actual materials and supplies for the month was $2,320.
The spending variance for materials and supplies in November would be closest to:
a. $45 F
b. $155 U
c. $45 U
d. $155 F
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