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

question 5

Multiple Choice

Lauter 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 $5,300 per month plus $480 per press run plus $1,080 per book set-up. The company expected its activity in October to be 169 press runs and 64 book set-ups, but the actual activity was 167 press runs and 60 book set-ups. The actual cost for wages and salaries in October was $155,690.
-The wages and salaries in the flexible budget for October would be closest to:

• A) $155,540
• B) $155,690
• C) $150,260
• D) $153,699

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Definitions:

Minimum Wage

The lowest legally allowed wage that employers can pay their employees.

Employed

The condition of being employed or involved in a job or project for the purpose of generating revenue.

Minimum Wage

The lowest legally permissible wage that employers can pay their workers, intended to protect laborers from exploitation.

Earn Per Hour

The amount of income or wages received by an individual or paid for a specific task or job, calculated on an hourly basis.