Why Choose Us?
0% AI Guarantee
Human-written only.
24/7 Support
Anytime, anywhere.
Plagiarism Free
100% Original.
Expert Tutors
Masters & PhDs.
100% Confidential
Your privacy matters.
On-Time Delivery
Never miss a deadline.
No Peanuts Airlines uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports
No Peanuts Airlines 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 $50,500 per month plus $1,500 per flight plus $2 per passenger. The company, expected its activity in April to be 73 flights and 223 total passengers, but the actual activity was 72 flights and 228 total passengers. The actual cost for plane operating costs in April was $179,020. The activity variance for plane operating costs in April would be closest to: Actual Cost Flex Budget Planning Budget
$1,5100 $1,510F $1490 F $1,4900
Expert Solution
| Activity variance is the difference between planning budget and flexible budget | ||
| Plane operating costs in Planning budget | 160446 | =50500+(1500*73)+(2*223) |
| Less: Plane operating costs in Flexible budget | 158956 | =50500+(1500*72)+(2*228) |
| Activity variance for Plane operating costs | 1490 | F |
| $1,490 F is correct option | ||
Archived Solution
You have full access to this solution. To save a copy with all formatting and attachments, use the button below.
For ready-to-submit work, please order a fresh solution below.
