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 $4,350 per month plus $400 per press run plus $950 per book set-up. The company expected its activity in July to be 224 press runs and 131 book set-ups, but the actual activity was 221 press runs and 130 book set-ups. The actual cost for wages and salaries in July was $218,080.

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

Multiple Choice

• $320 F

• $1,830 U

• $1,830 F

• $320 U