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 $57,210 per month plus $2,644 per flight plus $5 per passenger. The company expected its activity in February to be 72 flights and 280 passengers, but the actual activity was 71 flights and 281 passengers. The actual cost for plane operating costs in February was $245,290. The plane operating costs in the planning budget for February would be closest to: Multiple Cholce $248,978 $247,934 $246,339

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 $57,210 per month plus $2,644 per flight plus $5 per passenger. The company expected its activity in February to be 72 flights and 280 passengers, but the actual activity was 71 flights and 281 passengers. The actual cost for plane operating costs in February was $245,290. The plane operating costs in the planning budget for February would be closest to: Multiple Cholce $248,978 $247,934 $246,339

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter4: Activity-based Costing

Section: Chapter Questions

Problem 9E: Nozama.com Inc. sells consumer electronics over the Internet. For the next period, the budgeted cost...

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