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Question: kudej printing uses two measures of activity press runs and...

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Kudej 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 $8,360 per month plus $570 per press run plus $910 per book set-up. The company expected its activity in May to be 194 press runs and 74 book set-ups, but the actual activity was 195 press runs and 72 book set-ups. The actual cost for wages and salaries in May was $188,370.

The wages and salaries in the planning budget for May would be closest to:

$185,030

$188,370

$187,404

$186,280

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