Borunda Air uses two measures of activity, flights and passengers, in the cost formulas in...
60.1K
Verified Solution
Link Copied!
Question
Accounting
Borunda 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 $46,500 per month plus $2,965 per flight plus $14 per passenger. The company expected its activity in July to be 156 flights and 321 passengers, but the actual activity was 158 flights and 319 passengers. The actual cost for plane operating costs in July was $507,160. The activity variance for plane operating costs in July would be closest to:
A:$6,374 F
B:$5,902 F
C:$6,374 U
D:$5,902 U
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
