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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

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