Question
Thomasson Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. The cost formula for plane
Thomasson 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 $36,200 per month plus $2,050 per flight plus $1 per passenger. The company expected its activity in April to be 80 flights and 230 passengers, but the actual activity was 79 flights and 235 passengers. The actual cost for plane operating costs in April was $195,000. The activity variance for plane operating costs in April would be closest to: |
a)$5,430 F
b)$2,045 U
c)$5,430 U
d)$2,045 F
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started