Sissac catering uses two measures of activity jobs and


Sissac 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 $450 per month plus $105 per job plus $25 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 May to be 15 jobs and 125 meals, but the actual activity was 9 jobs and 132 meals. The actual cost for catering supplies in May was $4,450. The spending variance for catering supplies in May would be closest to:

$700 U

$700 F

$245 F

$245 U

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Financial Accounting: Sissac catering uses two measures of activity jobs and
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