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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 $36,150 per month plus $2,040 per flight plus $1 per passenger. The company expected its activity in October to be 75 flights and 225 passengers, but the actual activity was 74 flights and 230 passengers. The actual cost for plane operating costs in October was $185,300. The activity variance for plane operating costs in October would be closest to:

Multiple Choice $4,075 F $2,035 F $4,075 U $2,035 U

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