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Agata [3.3K]
3 years ago
12

Groupe Air uses two measures of activity, flights and passengers, in the cost formulas in its budgets and performance reports. T

he cost formula for plane operating costs is $36,130 per month plus $2036 per flight plus $1 per passenger. The company expected its activity in October to be 73 flights and 223 passengers, but the actual activity was 72 flights and 228 passengers. The actual cost for plane operating costs in October was $179,050. The activity variance for plane operating costs in October would be closest to:
Business
1 answer:
Anvisha [2.4K]3 years ago
3 0

Answer:

$5,931 Favorable

Explanation:

Operating cost for actual activity:

= $36,130 + ($2,036 per flight × No. of flights) + ($1 per passenger × No. of passenger)

= $36,130 + ($2,036 per flight × 73) + ($1 per passenger × 223)

= $36,130 + $148,628 + $223

= $184,981

Activity variance:

= Operating cost for actual activity - Actual cost for plane operating costs

= $184,981 - $179,050

= $5,931 Favorable

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Answer:

245 free throws

Explanation:

x will be number of times Audreys makes a shot, and let y be total number of the shots.

x/y = .875

(x+13)/(y+20) = .860

Let solve for x in equation 1

x = .875y

We will plug the for x in the equation 2

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= .860

.875y + 13

= .860y + 17.2

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y = 280

Audreys has taken 280 shots.

We will Plug that back into the equation 1 in order to find out how many Audreys made.

x/280 = .875

x = 245

Hence :

Audreys made 245 free throws

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3 years ago
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In a bottom-up approach, managers should have a high level of controllability and a high level of involvement in budget setting.

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