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 $36,210 per month plus $2,052 per flight plus $1 per passenger. The company expected its activity in October to be 81 flights and 231 passengers, but the actual activity was 80 flights and 236 passengers. The actual cost for plane operating costs in October was $196,000. The activity variance for plane operating costs in October would be closest to:

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 $36,210 per month plus $2,052 per flight plus $1 per passenger. The company expected its activity in October to be 81 flights and 231 passengers, but the actual activity was 80 flights and 236 passengers. The actual cost for plane operating costs in October was $196,000. The activity variance for plane operating costs in October would be closest to:

Principles of Accounting Volume 2

19th Edition

ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter8: Standard Costs And Variances

Section: Chapter Questions

Problem 8EB: Case made 24,500 units during June, using 32,000 direct labor hours. They expected to use 31,450...

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