Bobe Air Uses Two Measures of Activity, Flights and Passengers

question 243

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

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Definitions:

Conditioned Response

A learned reaction to a previously neutral stimulus that has become associated with an unconditioned stimulus through conditioning.

Foot-In-The-Door Technique

A compliance strategy that involves getting a person to agree to a large request by first setting them up to agree to a modest request.

Shaping

A method of positive reinforcement in operant conditioning that rewards closer and closer approximations of the desired behavior.

Small Request

A technique in persuasion and compliance that involves asking for a minor initial request in hopes of influencing agreement to a larger request.