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Thomasson Air uses two measures of activity, flights andpassengers, in the cost formulas in its budgets and performancereports. The cost formula for plane operating costs is $36,120 permonth plus $2,034 per flight plus $1 per passenger. The companyexpected its activity in April to be 72 flights and 222 passengers,but the actual activity was 71 flights and 227 passengers. Theactual cost for plane operating costs in April was $179,040. Theactivity variance for plane operating costs in April would beclosest to:

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Reid Wolff
Reid WolffLv2
28 Sep 2019

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