Bobe Air Uses Two Measures of Activity, Flights and Passengers

question 101

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 plane operating costs in the flexible budget for May would be closest to:

• A)$215,950
• B)$208,788
• C)$215,140
• D)$217,999

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Definitions:

Behavior Therapy

A type of psychotherapy that focuses on changing undesirable behaviors through conditioning techniques.

Long-Term Treatment

An extended course of therapy or medical intervention designed to manage chronic conditions or diseases over a significant period.

Brain Stimulation

A method of inducing changes in brain activity through direct or indirect stimulation of the brain, used in the treatment of certain neurological and psychiatric conditions.

Cognitive Therapy

A kind of psychotherapy that treats mental, emotional, and psychological problems by identifying and challenging dysfunctional thoughts.