Teel Printing Uses Two Measures of Activity, Press Runs and Book

question 288

Multiple Choice

Teel Printing uses two measures of activity, press runs and book set-ups, in the cost formulas in its budgets and performance reports. The cost formula for wages and salaries is $8,850 per month plus $400 per press run plus $950 per book set-up. The company expected its activity in July to be 204 press runs and 111 book set-ups, but the actual activity was 201 press runs and 110 book set-ups. The actual cost for wages and salaries in July was $193,780.The wages and salaries in the planning budget for July would be closest to:

• A) $193,750
• B) $196,672
• C) $195,900
• D) $193,780

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Definitions:

Tally Sheet

A document used for recording and counting results or items in real-time, often manually, as in inventory or quality control efforts.

Work Sampling Study

An observational technique used to estimate the proportion of time spent on different activities, based on randomly selected observations over a period.

Wasted Motions

Unnecessary or inefficient movements by workers during the production process, often leading to increased time and reduced productivity.

Micro-motions

Small, repetitive motion elements into which a task can be broken down in motion study, aimed at improving efficiency and minimizing waste.