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 wages and salaries in the planning budget for May would be
closest to:
$185,030 |
||
$188,370 |
||
$187,404 |
||
$186,280 |
Answer is “$186,280”
Cost formula for Wages and Salaries = $8,360 + $570 * Press run + $910 * Book set-up
Expected activity = 194 Press runs and 74 Book set-ups
Planning budget for Wages and Salaries = $8,360 + $570 * 194 +
$910 * 74
Planning budget for Wages and Salaries = $186,280
Kudej Printing uses two measures of activity, press runs and book set-ups, in the cost formulas...
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