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Groupe Air uses two measures of activity, flights and passengers, in the cost formulas in...

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Accounting

Groupe 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 $36,260 per month plus $2,062 per flight plus $1 per passenger. The company expected its activity in October to be 86 flights and 236 passengers, but the actual activity was 85 flights and 241 passengers. The actual cost for plane operating costs in October was $208,130. The activity variance for plane operating costs in October would be closest to: Multiple Choice $5,698 F $2,057 F $5,698 U $2,057 U

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