Privitera Printing uses two measures of activity, press runs and book set-ups, i

Question

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 wages and salaries in the flexible budget for January would be closest to: A) $259,290 B) $269,270 C) $263,428 D) $257,910

Explanation / Answer

D) $257,910

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