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 $3,950 per month plus $408 per press run plus $958 per book set-up. The company expected its activity in July to be 216 press runs and 123 book set-ups, but the actual activity was 213 press runs and 122 book set-ups. The actual cost for wages and salaries in July was $208,180.

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

rev: 06_30_2020_QC_CS-208650

Multiple Choice

$1,732 F

$450 U

$1,732 U

$450 F