Question

SAVED Help Save & Exit Standahl 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 $41,290 per month plus $2.819 per flight plus $21 per passenger. The company expected its activity in August to be 99 flights and 311 passengers, but the actual activity was 102 flights and 314 passengers. The actual cost for plane operating costs in August was $264,190. The plane operating costs in the planning budget for August would be closest to:

Answer 1

Answer- calculation of plane operating costs:- = $ 41,290 #xed cost variable costs U & $2819x99 flightsa 279081 6531 2) $ 21 x 311 passengers = - $285612 = Total Operating costs $ 32.6,90L plane =xz Thanks.