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Hirons Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane
Hirons 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 $56,990 per month plus $2,896 per flight plus $12 per passenger. The company expected its activity in November to be 80 flights and 250 passengers, but the actual activity was 83 flights and 252 passengers. The actual cost for plane operating costs in November was $290,150. The spending variance for plane operating costs in November would be closest to: Multiple Choice $10,232 U $1,520 F $10,232 F $1,520 U
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