Canniff Air uses two measures of activity, flights and passengers, in the cost formulas in...
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Canniff 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 $56,860 per month plus $2,630 per flight plus $4 per passenger. The company expected its activity in February to be 65 flights and 266 passengers, but the actual activity was 64 flights and 267 passengers. The actual cost for plane operating costs in February was $225,000. The plane operating costs in the planning budget for February would be closest to: Multiple Choice $228,874 $227,630 O $226,248 O O $225,000
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