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

question 253

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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