Hirons Air Uses Two Measures of Activity, Flights and Passengers

question 207

Multiple Choice

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:

• A) $2,219 U
• B) $10,867 U
• C) $10,867 F
• D) $2,219 F

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Definitions:

Rural Populations

Communities located in non-urban areas characterized by fewer residents, often facing unique healthcare delivery and accessibility challenges.

Urban Populations

The demographic groups residing within cities or densely populated areas characterized by high human settlement and infrastructure development.

Short-Term Illnesses

Health conditions characterized by a brief duration, typically resolving within three months or less.

Frailty

A state of increased vulnerability due to aging or illness, leading to a higher risk of falls, sudden health declines, and increased dependency.