Question
Canniff Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane
Canniff 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 $56,910 per month plus $2,632 per flight plus $5 per passenger. The company expected its activity in February to be 66 flights and 268 passengers, but the actual activity was 65 flights and 269 passengers. The actual cost for plane operating costs in February was $228,090. The plane operating costs in the planning budget for February would be closest to:
A 231,962
B 230,722
C 229,335
D 228,090
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