Formula

Planning Budget

Activity Variances

U (Unfav) or F (Fav)

Flexible Budget

Spending Variances

U (Unfav) or F (Fav)

Actual Results (Given)

Flights

n/a

Passengers

Plane Operating Costs

Krejci 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 $41,430 per month plus $2,419 per flight plus $6 per passenger. The company expected its activity in March to be 84 flights and 222 passengers, but the actual activity was 81 flights and 220 passengers. The actual cost for plane operating costs in March was $239,870. Calculate the planning budget, flexible budget and all variances.

Formula

Planning Budget

Activity Variances

U (Unfav) or F (Fav)

Flexible Budget

Spending Variances

U (Unfav) or F (Fav)

Actual Results (Given)

Flights

n/a

Passengers

Plane Operating Costs