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

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