Transcribed Image Text: 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

Transcribed Image Text: 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 $530o per month plus $102 per Job plus
$33 per meal. A typlcal 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 10 Jobs and 133 meals, but the
actual activity was 5 jobs and 116 meals. The actual cost for catering supplies In December was $5,350. The spending varlance for catering supplies in December would be closest to:
Multiple Cholce
$589 U
$589 F
$482 U
$482 F

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