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

question 174

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

• A)$2,090 F
• B)$3,340 U
• C)$3,340 F
• D)$2,090 U

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Definitions:

Dishabituation

The term used to describe the process in which an infant’s interest is renewed after a change in the stimulus.

Habituation

A psychological and physiological process whereby an individual becomes accustomed to a stimulus through repeated exposure, leading to a decrease in response.

Perceive Change

The process of recognizing or detecting alterations in one's environment or circumstances.

Perceptual Narrowing

The developmental process during which an individual becomes more attuned to specific sensory inputs and loses sensitivity to others, often observed in early childhood.