Reference no: EM132605947

Question 1: 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 $480 per month plus $108 per job plus $28 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 18 jobs and 128 meals, but the actual activity was 12 jobs and 111 meals. The actual cost for catering supplies in December was $5,400. The spending variance for catering supplies in December would be closest to:

Multiple Choice

Option 1: $608 U

Option 2: $608 F

Option 3: $516 U

Option 4: $516 F