Thor's Trains Service uses two measures of activity, train trips and passengers, in the cost formulas in its budgets and performance reports. The cost formula for train operating costs is $40,690 per month plus $2,759 per train trip plus $15 per passenger. The company expected its activity in August to be 93 train trips and 305 passengers, but the actual activity was 96 train trips and 308 passengers. The actual cost for train operating costs in August was $261,190.

Calculating Thor's operating costs for trains used in the planning budget for August are:

Thor's Trains Service uses two measures of activity, train trips and passengers, in the cost formulas in its budgets and performance reports. The cost formula for train operating costs is $40,690 per month plus $2,759 per train trip plus $15 per passenger. The company expected its activity in August to be 93 train trips and 305 passengers, but the actual activity was 96 train trips and 308 passengers. The actual cost for train operating costs in August was $261,190. Calculating Thor's operating costs for trains used in the planning budget for August are: Multiple Choice $310,174 $290.534 Oo oo $261,190 $301,852