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5 Groupe Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for
5 Groupe 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 $36,310 per month plus $2,072 per flight plus $1 per passenger. The company expected its activity in October to be 91 flights and 241 passengers, but the actual activity was 90 flights and 246 passengers. The actual cost for plane operating costs in October was $220,010. The activity variance for plane operating costs in October would be closest to: Multiple Choice $2,067 U $5,093 U O $2,067 F O $5,093 F
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