Answer:
$7,959 U
Explanation:
Calculation to determine what The activity variance for plane operating costs in August would be closest to
First step is to calculate the Planing budget
Planing budget =$39,590+$2,649*82+$4+294
Planing budget =$39,590+$217,218+$1,176
Planing budget =$257,984
Second step is to calculate the Flexible budget
Flexible budget=$39,590+$2,649*85+$4*297
Flexible budget=$39,590+$225,165+$1,188
Flexible budget=$265,943
Now let calculate the Activity Variance using this formula
Activity Variance=Planing budget-Flexible budget
Let plug in the formula
Activity Variance=$257,984-$265,943
Activity Variance=$7,959 U
Therefore The activity variance for plane operating costs in August would be closest to $7,959 U