Privitera 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 $7,220 per month plus $650 per press run plus $1,110 per book set-up. The company expected its activity in January to be 188 press runs and 117 book set-ups, but the actual activity was 191 press runs and 114 book set-ups. The actual cost for wages and salaries in January was $269,270.
-The spending variance for wages and salaries in January would be closest to:
A)$11,360 F
B)$9,980 U
C)$9,980 F
D)$11,360 U

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The Answer of Privitera 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 $7,220 per month plus $650 per press run plus $1,110 per book set-up. The company expected its activity in January to be 188 press runs and 117 book set-ups, but the actual activity was 191 press runs and 114 book set-ups. The actual cost for wages and salaries in January was $269,270.
-The spending variance for wages and salaries in January would be closest to:
A)$11,360 F
B)$9,980 U
C)$9,980 F
D)$11,360 U

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