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

question 84

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 flexible budget for May would be closest to:

• A)$185,030
• B)$186,280
• C)$188,370
• D)$187,240

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Definitions:

Partially At Fault

A situation where more than one party shares responsibility for a wrongful action or incident.

Occupier's Rights

Rights that grant an individual or entity the authority to use and control a property, without necessarily owning it.

Personal Property Securities Act

A legal framework that regulates the creation and enforcement of security interests in personal property.

Inherently Dangerous

Activities or substances that possess potential risk or harm by their nature, without needing any alteration or misuse.