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

question 267

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 activity variance for wages and salaries in January would be closest to:

• A)$9,980 F
• B)$1,380 U
• C)$1,380 F
• D)$9,980 U

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Definitions:

Doing Several Things

The ability or action of handling multiple tasks or activities simultaneously.

Alternative Work Schedule

An employment arrangement that differs from the traditional 9-to-5, Monday-to-Friday work week, often including flexible working hours or compressed workweeks.

Advantages

Benefits or favorable factors that contribute to the success of a business or strategy.

Disadvantages

Negative or less favorable conditions or factors that reduce effectiveness or efficiency.