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

question 311

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 spending variance for wages and salaries in July would be closest to:

• A) $30 U
• B) $2,120 F
• C) $30 F
• D) $2,120 U

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Definitions:

Transitional Supply

The interim or temporary provision of resources or services to an organization during periods of change or development.

Skills Gap

A discrepancy between the skills that employers want or need and the skills that their workforce currently possesses.

Labour Market Demand

The total demand for workers in a particular market, as determined by employers' needs for employees to perform certain jobs.

Human Capital

The competencies, insights, and background that an individual or community has, seen from the perspective of their financial or valuable contribution to a corporation.