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 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