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Sagot :
The activity variance for plane operating costs in October would be closest to $4,727 F .
Option D is correct.
Activity variance :
Activity deviation is the difference. Between a revenue or cost item in a variable budget and the same item in a static plan budget. Performance deviation arises only from the difference between the actual service coverage of the flexible budget and the expected service coverage of the planning budget.
Evaluating activity variance :
Plane operating costs in planning budget :
= 48840+(2381 × 63)+(7× 293)
$ 200894
Less: Plane operating costs in flexible budget
= 48840+(2381 × 61)+(7× 298)
$196167
Activity variance for Plane operating costs = $200,894 - $196,167
= $4,727.
Activity variance is $4,727 F .
What is the purpose of activity variance?
Differences in activity are important for managerial decision-making. This is the difference between static and flexible budget cost items. This shows the cost difference between planned and flexible budgets.
Learn more about activity variance :
brainly.com/question/29704119
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