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

question 34

Multiple Choice

Privitera 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 $7,220 per month plus $650 per press run plus $1,110 per book set-up. The company expected its activity in January to be 188 press runs and 117 book set-ups, but the actual activity was 191 press runs and 114 book set-ups. The actual cost for wages and salaries in January was $269,270.
-The wages and salaries in the planning budget for January would be closest to:

• A)$257,910
• B)$259,290
• C)$265,041
• D)$269,270

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Definitions:

Kilometres

A unit of length in the metric system equal to 1,000 meters, commonly used to measure distances between places.

Harmonized Sales Tax

A combined tax that includes both federal and provincial sales taxes, applied to the purchase of goods and services.

Price Tags

Labels or stickers on merchandise displaying the price of the item.

Implied Value

The estimated value of an asset or company after considering factors not directly stated but suggested by available information.