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

question 256

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 flexible budget for July would be closest to:

• A) $193,019
• B) $195,900
• C) $193,780
• D) $193,750

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