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Dermody Snow Remova ls cost formula for its vehicle operating cost is $3,060 per month plus $336 per snow-day. For the month
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Answer #1

Actual level of activity= 20 snow days

Cost formula= $3060+$336*Actual level of activity

Flexible operating cost= $3060+$336*20= $9780

Spending variance= Actual operating cost-Flexible operating cost

= $9385-9780

= $395 F

So, the answer is option C) $395 F

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