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Standahl Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane

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Standahl 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 $40,790 per month plus $2,769 per flight plus $16 per passenger. The company expected its activity in August to be 94 flights and 306 passengers, but the actual activity was 97 flights and 309 passengers. The actual cost for plane operating costs in August was $261,690. The plane operating costs in the planning budget for August would be closest to: Multiple Choice $305,972 $294,654 $314,327 $261,690

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