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

question 70

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

• A)$2,090 F
• B)$3,340 U
• C)$3,340 F
• D)$2,090 U

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Definitions:

Appreciates

Denotes the appreciation in an asset's value as time progresses.

£

The symbol for the British Pound Sterling, the currency of the United Kingdom.

Foreign Contract

A legally binding agreement between parties from different countries, subject to international law or specified national legal systems.

£ Per C$

£ Per C$ refers to the exchange rate determining how many British pounds (£) one can exchange for one Canadian dollar (C$), indicating the comparative value of the two currencies.