Hirons Air uses two activity measures, flights and passengers, in its cost formulas in its budgets and
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Hirons Air uses two activity measures, flights and passengers, in its cost formulas in its budgets and performance reports. The cost formula for aircraft operating costs is $57,440 per month plus $2,962 per flight plus $15 per passenger. While the company expects its activity in November to be 83 flights and 255 passengers, the main activity was 86 flights and 257 passengers. The actual cost of aircraft operating costs in November was $305,490.
The expenditure variance for aircraft operating costs in November would be closest to?
Related Book For
Fundamentals of Cost Accounting
ISBN: 978-0077398194
3rd Edition
Authors: William Lanen, Shannon Anderson, Michael Maher
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