Reference no: EM132605945

Question 1: Hirons 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 $57,290 per month plus $2,940 per flight plus $14 per passenger. The company expected its activity in November to be 82 flights and 253 passengers, but the actual activity was 85 flights and 255 passengers. The actual cost for plane operating costs in November was $300,460. The spending variance for plane operating costs in November would be closest to:

Multiple Choice

Option 1: $1,452 U

Option 2: $10,300 U

Option 3: $10,300 F

Option 4: $1,452 F