A small airline uses two measures of activity, flights and p…
A small airline 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 $36,140 per month plus $2,038 per flight plus $1 per passenger. The company expected its activity in January to be 73 flights and 229 passengers, but the actual activity was 74 flights and 224 passengers. The actual cost for plane operating costs in the month was $180,560. The activity variance for plane operating costs in the month would be closest to: