Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Bobe Air uses two measures if activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane

Bobe Air uses two measures if activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane operating cost is $44,580 per month plus $2,390 per flight plus $8 per passenger. The company expected its activity in May to be 68 flights and 211 passengers., but the actual activity was 71 flights and 210 passengers. The cost for plane operating cost in May was $215,140.

The spending variance for plane operating costs in May would closet to:

$6,352F

$810 U

$810 F

$6,352 U

Please respond.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Students also viewed these Accounting questions