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

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Borunda 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 $40,800 per month plus $2,775 per flight plus $6 per passenger. The company expected its activity in July to be 110 flights and 308 passengers, but the actual activity was 114 flights and 304 passengers. The actual cost for plane operating costs in July was $341,510. The activity variance for plane operating costs in July would be closest to: O $6.388 F $11,076 F O $6,388 u O$11.076 U

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