23.

Borunda Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating costs is $41,600 per month plus $2,829 per flight plus $15 per passenger. The company expected its activity in July to be 167 flights and 246 passengers, but the actual activity was 172 flights and 241 passengers. The actual cost for plane operating costs in July was $511,430. The activity variance for plane operating costs in July would be closest to:

rev: 10_22_2016_QC_CS-67044

$14,070 U

$6,303 U

$6,303 F

$14,070 F