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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.
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