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

question 232

Multiple Choice

Kudej 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 $8,360 per month plus $570 per press run plus $910 per book set-up. The company expected its activity in May to be 194 press runs and 74 book set-ups, but the actual activity was 195 press runs and 72 book set-ups. The actual cost for wages and salaries in May was $188,370. The wages and salaries in the flexible budget for May would be closest to:

• A)$185,030
• B)$186,280
• C)$188,370
• D)$187,240

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Definitions:

Endocrine System

A network of glands in the body that secrete hormones directly into the bloodstream to regulate bodily functions.

Mobilization

The act of assembling and making both troops and supplies ready for war.

Dendrites

Branch-like extensions of neurons that receive signals from other neurons and convey them toward the cell body.

Neuron

A specialized cell transmitting nerve impulses; a nerve cell.