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

question 253

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 planning budget for May would be closest to:

• A)$185,030
• B)$188,370
• C)$187,404
• D)$186,280

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Definitions:

Royalty Income

Income earned from the right to use intellectual property or natural resources.

Schedule/Form

Documents filed with or attached to a tax return, providing additional information, calculations, or reports to the IRS.

Published

Made available to the public through print or electronic media.

Business Revenue

The total amount of income generated by a company from its activities, such as sales of products or services, before any expenses are subtracted.