Airline One uses two measures of activity, flights and passe…
Questions
Airline One uses twо meаsures оf аctivity, flights аnd passengers, in the cоst formulas in its budgets and performance reports. The cost formula for plane operating costs is $40,890 per month plus $2,779 per flight plus $17 per passenger. The company expected its activity in December to be 95 flights and 307 passengers, but the actual activity was 98 flights and 310 passengers. The actual cost for plane operating costs in August was $262,190.The plane operating costs in the planning budget for August would be closest to: