Lapinsky Air Uses Two Measures of Activity, Flights and Passengers

question 276

Multiple Choice

Lapinsky 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 $31,400 per month plus $2,148 per flight plus $7 per passenger. The company expected its activity in April to be 89 flights and 261 passengers, but the actual activity was 84 flights and 260 passengers. The actual cost for plane operating costs in April was $204,810. The spending variance for plane operating costs in April would be closest to:

• A) $8,842 U
• B) $19,589 F
• C) $19,589 U
• D) $8,842 F

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Definitions:

Imperative Statement

An imperative statement is a command or instruction given in direct and clear terms, often used to direct action.

Pronoun Case

The grammatical category of pronouns based on their function in a sentence, including subject, object, and possessive cases.

Incorrect Case

The use of a wrong form of a noun, pronoun, or adjective in a sentence, based on grammatical rules of languages that have case distinctions.

Dangling Modifier

A word or phrase that modifies a word not clearly stated in the sentence, often leading to confusion or a humorous misinterpretation.