Hirons Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance re
Posted: Thu May 19, 2022 12:48 pm
Hirons 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 $56,840 per
month plus $2,874 per flight plus $13 per passenger. The company
expected its activity in November to be 86 flights and 255
passengers, but the actual activity was 89 flights and 257
passengers. The actual cost for plane operating costs in November
was $305,100. The spending variance for plane operating costs in
November would be closest to:
Group of answer choices
$10,867 U
$2,219 U
$10,867 F
$2,219 F
passengers, in the cost formulas in its budgets and performance
reports. The cost formula for plane operating costs is $56,840 per
month plus $2,874 per flight plus $13 per passenger. The company
expected its activity in November to be 86 flights and 255
passengers, but the actual activity was 89 flights and 257
passengers. The actual cost for plane operating costs in November
was $305,100. The spending variance for plane operating costs in
November would be closest to:
Group of answer choices
$10,867 U
$2,219 U
$10,867 F
$2,219 F