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gabbee
gabbee
30.11.2021 • 
Business

3. Gershon 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 $50,000 per month plus $2,500 per flight plus $10 per passenger. The company expected its activity in June to be 80 flights and 220 passengers, but the actual activity was 70 flights and 200 passengers. The actual cost for plane operating costs in June was $250,000. The spending variance for plane operating costs in June would be closest to:

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