The activity variance for plane operating costs

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Reference no: EM13823050

Thomason 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 $36,300 per month plus $2,070 per flight plus $1 per passenger. The company expected its activity in April to be 90 flights and 240 passengers, but the actual activity was 89 flights and 245 passengers. The actual cost for plane operating costs in April was $218,320. The activity variance for plane operating costs in April would be closest to:

$2,065 U

$4,520 F

$2,065 F

$4,520 U

Reference no: EM13823050

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