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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

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 $47,300 per month plus $2,380 per flight plus $13 per passenger. The company expected its activity in May to be 70 flights and 251 passengers, but the actual activity was 73 flights and 250 passengers. The actual cost for plane operating costs in May was $223,380. The plane operating costs in the planning budget for May would be closest to:

$217,163

$224,290

$214,425

$223,380

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