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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Definitions:

Competence

The ability to do something successfully or efficiently, often requiring specific skills and knowledge.

Commitment

The psychological attachment and dedication an individual feels towards a goal, activity, or organization, which often influences their engagement and persistence.

Situational Leadership

A rephrased definition: An adaptable leadership strategy that proposes the effectiveness of a leadership style is contingent upon various factors, including the task at hand and the development level of team members.

Leadership Styles

Different approaches to leadership based on the behavior of the leader, ranging from autocratic to democratic to laissez-faire.