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 $36,280 per month plus $2,066 per flight plus $1 per passenger. The company expected its activity in April to be 88 flights and 238 passengers, but the actual activity was 87 flights and 243 passengers. The actual cost for plane operating costs in April was $211,030. The activity variance for plane operating costs in April would be closest to:
A.$7,296 F
B.$2,061 U
C.$2,061 F
D.$7,296 U
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