Cannift Air uses two measures of activity, flights and passengers, in the cost formulas in...
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Cannift 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 $57,360 per month plus $2,650 per flight plus $8 per passenger. The company expected its activity in February to be 75 flights and 286 passengers, but the actual activity was 74 flights and 287 passengers. The actual cost for plane operating costs in February was $254,770. The plane operating costs in the planning budget for February would be closest to: Multiple Choice $255,756 $254.770 $258.398 $257,420
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