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

question 92

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

• A) $5,280 U
• B) $150 U
• C) $150 F
• D) $5,280 F

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Definitions:

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Documents signed by employees to indicate their desire for a particular union to represent them in collective bargaining with an employer.

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An independent federal agency in the United States that enforces US labor law in relation to collective bargaining and unfair labor practices.

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