Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. aero company has implemented a gain sharing compen

Aero Company has implemented a gain sharing compensation plan for its production employees. The plan...

70.2K

Verified Solution

Question

Accounting

Aero Company has implemented a gain sharing compensation plan for its production employees. The plan is a Scanlon plan and the base period payroll costs are$10,000. The value of production in the base period was $100,000. The plan calls for labor savings to be added to, or excess labor costs to be deducted from, the bonus pool each quarter. The payroll costs and value of production in each quarter of the current year were:

Quarter

Payroll

Production

1

$ 9,000

$110,000

2

10,000

100,000

3

11,000

120,000

4

12,000

130,000

Total

$42,000

$460,000

The bonus pool at the end of the year totals:

A.

($4,000).

B.

$4,000.

C.

minus0minus.

D.

None of the above is correct.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Physics
1.2K views

The recoil speed of a hydrogen atom after it emits a photon in going from...

Statistics
1.2K views

Suppose you are trying to determine the number of boxes you need to order to be...

Statistics
1.2K views

In a study of store checkout scanners, a sample of 1234 items were checked and 20...

General Management
1.2K views

propose two strategies that an organization should consider in order to maintain its competitive advantage. Justify...

Advance Math
1.2K views

1- Number and describe at least five (5) factors that determine your credit score ? 2-Explain why...

General Management
1.2K views

1 - Define the data mining technique of cause-and-effect modeling. Provide an example to illustrate cause-and-effect modeling...

Calculus
1.2K views

3 a What does the limit lim 0 f h 4 f 4 h 8...

Calculus
1.2K views

Evaluate tan 55 3

Accounting
1.2K views

Kerwin Company is considering purchase of equipment that costs $50,000. If the useful life is...

Accounting
1.2K views

Harrods Sporting Goods Jim Harrod knew that service, above all, was important to his customers....

Accounting
1.2K views

Digisnaps Ltd plans to produce 65000 units per month during 2021. Sales are projected at...

Accounting
1.2K views

Exercise 23-14 Picard Landscaping plants grass seed as the basic landscaping for business campuses. During...