Question

Answer is not $30 F.

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 Multiple Choice $2,120 F $30 U o oo O $2120 U

Answer 1

A spending variance is the difference between the actual and expected (or budgeted) amount of an expense. The spending variance for direct labor is known as the labor rate variance, and is the actual labor rate per hour minus the standard rate per hour, multiplied by the number of hours worked
Particulars	Standard labour wages	Actual cost of wages	Spending Variance
Salaries	8850
Run expences for 201 runs	80400
Book setup expenses for 110	104500
	193750	193780	-30
So the answer is $30 U