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

question 256

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

• A)$1,250 F
• B)$2,090 F
• C)$2,090 U
• D)$1,250 U

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Definitions:

Encoding

The process by which information is transformed into a format that can be stored in memory, an initial step in memory formation.

Short-Term Memory

A cognitive system with a limited capacity that is capable of temporarily holding information available for processing. Short-term memory is essential for day-to-day tasks such as reasoning and decision-making.

Chunking

A process by which individual pieces of information are bound together into a meaningful whole, often to improve memory retention.

Short-Term Memory

The capacity to hold a small amount of information in an active, readily available state for a short period of time.