Courington Detailing's cost formula for its materials and supplies is $2,080 per month plus $14 per vehicle. For the month of August, the company planned for activity of 88 vehicles, but the actual level of activity was 48 vehicles. The actual materials and supplies for the month was $2,570. The spending variance for materials and supplies in August would be closest to:
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Agency costs do not involve costs that are incurred from managers pursuing their own interests at the expense of shareholder value and do not involve costs that are incurred by shareholders to make sure that managers pursue shareholder value.
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Courington Detailing's cost formula for its materials and supplies is $2,080 per month plus $14 per...
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