Herrod Catering uses two measures of activity, jobs and meals, in the cost formulas in...
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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 $470 per month plus $107 per job plus $27 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 b 17 jobs and 127 meals, but the actual activity was 11 jobs and 110 meals. The actual cost for catering supplies in December was $5,100. The spending variance for catering supplies in December would be closest to: $483 U Loo oo $483 F $618 u
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