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Dangerous Airlines uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane
Dangerous Airlines 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 $40,550 per month plus $2,739 per flight plus $9 per passenger. The company expected its activity in October to be 72 flights and 210 passengers, but the actual activity was 70 flights and 208 passengers. The actual cost for plane operating costs in October was $241,000. The plane operating costs in the planning budget for October would be closest to:
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