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

Multiple Choice

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 $8,850 per month plus $400 per press run plus $950 per book set-up. The company expected its activity in July to be 204 press runs and 111 book set-ups, but the actual activity was 201 press runs and 110 book set-ups. The actual cost for wages and salaries in July was $193,780.The spending variance for wages and salaries in July would be closest to:

A) $30 U
B) $2,120 F
C) $30 F
D) $2,120 U