Thomasson Air Uses Two Measures of Activity,flights and Passengers,in the Cost

question 190

Multiple Choice

Thomasson 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 $36,160 per month plus $2,038 per flight plus $1 per passenger.The company expected its activity in April to be 73 flights and 223 passengers,but the actual activity was 72 flights and 228 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:

• A)$6,137 U
• B)$6,137 F
• C)$2,033 U
• D)$2,033 F

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Definitions:

Wheezing

A high-pitched whistling sound made while breathing, often associated with respiratory illness or asthma.

Pyothorax

The accumulation of pus in the pleural cavity between the lung and the chest wall, often due to infection.

Py/o

A prefix in medical terms indicating the presence of pus.

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A viral infection that attacks the respiratory system, commonly known as the flu.