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

question 380

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 $4,300 per month plus $401 per press run plus $951 per book set-up. The company expected its activity in July to be 223 press runs and 130 book set-ups, but the actual activity was 220 press runs and 129 book set-ups. The actual cost for wages and salaries in July was $216,880.The spending variance for wages and salaries in July would be closest to:

• A) $1,681 U
• B) $473 F
• C) $1,681 F
• D) $473 U

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