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 $4,150 per month plus $404 per press run plus $954 per book set-up. The company expected its activity in July to be 220 press runs and 127 book set-ups, but the actual activity was 217 press runs and 126 book set-ups. The actual cost for wages and salaries in July was $212,980.

The spending variance for wages and salaries in July would be closest to:

Multiple Choice

• $958 U

• $1,208 F

• $958 F

• $1,208 U