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Groupe Air uses two measures of activity, flights and passengers, in the cost formula in its budgets and performance reports. The cost formula for plane
Groupe Air uses two measures of activity, flights and passengers, in the cost formula in its budgets and performance reports. The cost formula for plane operating costs is 36,330 per month plus 2,076 per flight plus $1 per passenger. The company expected its activity in October to be 93 flights and 243 passengers, but the actual activity was 92 flights and 248 passengers. The actual cost for plane operating costs in October was 226310. The activity variance for plane operating costs in October would be closest to: 2071 U 2071 F 3331 F 3331 U
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