Sterr Air Uses Two Measures of Activity, Flights and Passengers

question 189

Multiple Choice

Sterr 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 $49,340 per month plus $2,635 per flight plus $2 per passenger. The company expected its activity in January to be 73 flights and 191 passengers, but the actual activity was 75 flights and 193 passengers. The actual cost for plane operating costs in January was $246,440.
-The activity variance for plane operating costs in January would be closest to:

• A)$5,274 F
• B)$4,363 U
• C)$4,363 F
• D)$5,274 U

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Definitions:

D-Arabinose

A monosaccharide sugar, which is an aldopentose because it contains five carbon atoms and includes an aldehyde group.

Configurations

The particular arrangement or geometric orientation of atoms or groups within a molecule, which cannot be changed without breaking covalent bonds.

Monosaccharides

Simple sugars that cannot be hydrolyzed to smaller carbohydrates, examples include glucose and fructose.

Water Soluble

Describes substances that can dissolve in water.