Pratte Boat Wash's cost formula for its cleaning equipment and supplies is $2.460 per month plus $49 per boat
Pratte Boat Wash's cost formula for its cleaning equipment and supplies is $2.460 per month plus $49 per boat. For the month of April, the company planned for activity of 58 boats, but the actual level of activity was 18 boats. The actual cleaning equipment and supplies for the month was $3,470
The activity variance for cleaning equipment and supplies in April would be closest to _______
Homework Answers
Solution:
Activity variance for cleaning equipment and supplies = Budgeted cost for actual activity - Budgeted cost for budgeted activity
= ($2,460 + 18*$49) - ($2,460 + 58*$49)
= $1,960 F
Hence first option is correct.
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