Express Inc. tour company uses two measures of activity, routes and passengers in its cost formulas used for budgeting and performance evaluation. The cost formula for tour operating costs is $56,890 per month plus $2,878 per route plus $17 per passenger. The company expected in August to perform 88 routes and serve 255 passengers, but the actual activity was 96 routes and 267 passengers. The actual tour operating costs in August was $305,100. The spending variance for tour operating costs in August would be closest to:
$32,617 Favorable
$9,389 Unfavorable
$23,228 Favorable
$9,389 Favorable
$32,617 Unfavorable