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Groupe Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane
Groupe 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 $36,320 per month plus $2,074 per flight plus $1 per passenger. The company expected its activity in October to b 92 flights and 242 passengers, but the actual activity was 91 flights and 247 passengers. The actual cost for plane operating costs in October was $225,110. The activity variance for plane operating costs in October would be closest to: Multiple Choice $2,260 F 0 $2,069 U 0 $2,260 U 0 $2,069 F $2,069F
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