Gershon Air Uses Two Measures of Activity, Flights and Passengers

question 289

Multiple Choice

Gershon 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 $38,720 per month plus $2,061 per flight plus $9 per passenger. The company expected its activity in June to be 76 flights and 238 passengers, but the actual activity was 75 flights and 239 passengers. The actual cost for plane operating costs in June was $196,310. The spending variance for plane operating costs in June would be closest to:

• A)$864 F
• B)$1,188 U
• C)$1,188 F
• D)$864 U

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Definitions:

Cultures

The shared values, beliefs, behaviors, and artifacts making up a society's way of life, passed down from generation to generation.

Basic Emotions

Fundamental emotions that are universally recognized and experienced by humans, such as happiness, sadness, fear, disgust, anger, and surprise.

Hand Gestures

Movements of the hands and arms used to communicate ideas or emotions non-verbally.

Physiological Arousal

The body's response to stimuli, involving increased physical activity and alertness, often accompanied by the release of adrenaline.