Question

Teel 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 $4,200 per month plus $403 per press run plus $953 per book set-up. The company expected its activity in July to be 221 press runs and 128 book set-ups, but the actual activity was 218 press runs and 127 book set-ups. The actual cost for wages and salaries in July was $214,180.
The spending variance for wages and salaries in July would be closest to:

Multiple Choice

$1,067 U

$1,095 U

$1,067 F

$1,095 F

Answer 1

Answer:

$1067 F

Explanation:

The spending variance for wages and salaries in July would be closest to $1067 F