7.

Bobe 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 $47,000 per month plus $2,730 per flight plus $9 per passenger. The company expected its activity in May to be 65 flights and 243 passengers, but the actual activity was 68 flights and 242 passengers. The actual cost for plane operating costs in May was $233,928. The plane operating costs in the planning budget for May would be closest to:

A. $223,899

B. $234,818

C. $226,637

D. $233,928