Bobe Air Uses Two Measures of Activity, Flights and Passengers

question 113

Multiple Choice

Bobe 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 $44, 580 per month plus $2, 390 per flight plus $8 per passenger.The company expected its activity in May to be 68 flights and 211 passengers, but the actual activity was 71 flights and 210 passengers.The actual cost for plane operating costs in May was $215, 140. The activity variance for plane operating costs in May would be closest to:

• A)$6, 352 F
• B)$7, 162 U
• C)$7, 162 F
• D)$6, 352 U

---

Definitions:

Shaking A Rattle

An activity often used in developmental psychology studies to understand sensorimotor skills in infants.

Reinforcer

A stimulus or event that increases the likelihood of the repetition of the behavior that precedes it.

Intermittently Reinforced

A conditioning schedule where only some of the responses made are followed by reinforcement, known to produce behavior that is more resistant to extinction than continuous reinforcement.

Parents

The caregivers of offspring in their own species; in humans, typically refers to a child's biological or adoptive mother and father.