Morgan's post on this thread is excellent. As Morgan says, it is the sum of the total indicated range (of wobble) for each wheel that should be considered. I thought a few diagrams showing wheel wobble variations might be useful.
Wheel wobble variations - in figures 1 and 2 the points of both wheels' maximum wheel wobble correlate (this is the worst possible orientation that must be accounted for)Figure 1. Both wheels are equally wobbly. If the total range of wheel set wobble were 0.08 mm, then the total wobble for each wheel would be 0.04 mm.
Figure 2. Wheel A is more wobbly than wheel B. Assuming the same range as above, if the total wobble for wheel A were 0.06 mm, then the total wobble for wheel B would be 0.02 mm.
Figure 3. Wheel A has zero wobble, therefore wheel B can have maximum wobble.
Figure 4. If both wheels were equally as wobbly, one wheel could be rotated around the axle until the point of its maximum wobble correlated with the other wheel's point of minimum wobble and chosen back to back (BB) dimension could be achieved across the whole of the wheel set. However, for loco driving wheels that have to be quartered, this is not an option.
In the diagrams above it has been assumed that the cause of wheel wobble is the fit of the axle in the bore, however it could, for instance, be the fit of the tyre on the wheel centre or the wheel centre itself that is the cause of wobble.
Thinking again about tolerances we came up with 0.08 mm as the total range of wheel wobble permissible for the wheel set. This happens to be the difference between minimum P4 BB and maximum P4 BB. So, if you use a back to back gauge of the P4 minimum setting (17.67 mm) you have 0.08 mm of wheel wobble to play with until the maximum P4 BB (17.75 mm) dimension is reached across part of the wheel set. What if you use a back to back gauge with a larger BB setting? Again exploring graphically what Morgan said in his post, I'll consider maximum values for wheel wobble for given BB settings.

The above drawing has been produced by modifying a diagram from Digest 1.2,
P4 Track and Wheel Standards, the same nomenclature is used.
A crossing is being traversed at the point of a wheel set's maximum wobble. The rear of wheel B is in contact with the check rail; The flange root radius of wheel A is in contact with the radius of the railhead. If the wheel set were any wobblier, wheel A could ride up the side of the rail head and lose contact at the tread, or in an extreme case of wheel wobble, wheel A could take the wrong route at the Vee - check rails exist to prevent this, but their effectiveness is dependent on the interrelationship between track and wheel standards. The diagram represents the maximum amount of wheel wobble permitted whereby wheel A cannot ride up the side of the Vee.
So, if CGmin is 18.15 mm, EFmax 0.40 mm and BBmin 17.67 mm the maximum wobbly wheel tolerance for the wheel set would be 0.08 mm. If BB is 17.70 mm, then the maximum wobbly wheel tolerance would be 0.05 mm. If the BB is 17.75 mm, then the tolerance for wheel wobble is zero.
As the BB dimension increases, the tolerance for wheel wobbliness decreases. Of course the values given for CG and EF are minimum and maximums respectively, so the tolerances are based on worst case scenarios.
It sounds worrying that there should be a zero tolerance for wheel wobble if you're using the Society recommended 17.75 mm BB setting. So, another diagram I'm afraid:

A wheel set is traversing a crossing. The rear of wheel B is in contact with the check rail. Because the BB + wobbliness across the wheel set is greater than CGmin - EFmax, the flange of wheel A is riding up the side of the Vee. As the actual back to back dimension of a wheel set (a wobbly wheel set has a range of BB dimensions) approaches the value of CG the risk of wheel A taking the wrong route at the Vee increases.
So, if BB were 17.75 mm and the wheel wobbliness range 0.08 mm, the flange could ride up the side of the Vee fractionally, but there would be little risk of a wrong route being taken. If a wheel wobbliness range of 0.125 (5 thou) existed, then the risk of wheel A taking the wrong route at the Vee would still be small since the flange could only ride up the side of the Vee rather than on top of it. If a wobbliness in excess of 0.125 mm existed then the risk of the wrong route being taken would be very much increased.
Going back to the practicalities of measuring wheel wobble. In my WYAG post I questioned whether it's actually necessary to measure wheel wobble and suggested that an undesirable amount of wheel wobble could be detected by the human eye. I believe that if a wheel set were to have a range of wobble from zero to 0.125 mm (5 thou) this would be obvious, and therefore any wheel set that is obviously wobbly, is probably not fit for use.
If using a BB setting of 17.75 mm, I think a total range of wheel wobble up to 0.08 mm would be a suitable tolerance; If using a BB setting of 17.70 mm, I’d say a total range up to 0.125 mm would be okay.