MOing to another question will save this response Question 28 of 50 Question 28

Question

MOing to another question will save this response Question 28 of 50 Question 28 1 points Save Answer Groupe 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 $48,840 per month plus $2,381 per flight plus St per passenge The company expected its activity in October to be 63 flights and 293 passengers, but the actual activity was 61 flights and 298 passengers. The actual cost for plane cperating costs in Oclober was $199,070 The activity variance for plane operating costs in October would be closest to O $1,824 F O $1,824 U $4,727 U O $4,727 F Question 28 of 50 ») Moving to another question will save this response Close Window

Explanation / Answer

Cost formuale =48840+(2381*flight)+(7*no of passengers)

actual activity is 61 flights and 298 passengers and cost is 199070

The flexible budget is =48840+(2381*61)+(7*298)=196167

the static budget is=48840+(2381*63)+(293*7)=200894

It is =200894-196167=4727 and it is favourable

option D

Related Questions

Navigate

• Browse (All)
• Browse M
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.