Asked by Mozes Leveille on Jul 20, 2024
Verified
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 wages and salaries in the flexible budget for July would be closest to:
A) $193,019
B) $195,900
C) $193,780
D) $193,750
Press Runs
A term often used in printing or manufacturing indicating the number of times a machine produces a particular set of print materials in a single operation.
Book Set-Ups
The initial configuration and adjustments made in accounting records or financial statements preparation.
Wages And Salaries
Compensation paid to employees for their services, with wages often calculated on an hourly basis and salaries on an annual basis.
- Develop the capability to analyze and compute disparities in flexible budgets among assorted cost divisions.
- Develop skills in budget planning and adjustment based on actual activities.
Verified Answer
Learning Objectives
- Develop the capability to analyze and compute disparities in flexible budgets among assorted cost divisions.
- Develop skills in budget planning and adjustment based on actual activities.
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