ABC Company 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 $36,290 per month plus $2,068 per flight plus $1 per passenger. The company expected its activity in October to be 89 flights and 239 passengers, but the actual activity was 88 flights and 244 passengers. The actual cost for plane operating costs in October was $211,040. The activity variance for plane operating costs in October would be closest to:

Multiple Choice

• $9,541 U

• $9,541 F

• $2,063 U

• $2,063 F

Answer rating: 100% (QA)

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