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

Consider the Potential V(r) =Vo (c/r) exp (-r/c) (where c is a constant) and a deutron...

Physics
1.2K views

The student observed the Moon to be about 12 degrees west of the Sun. What (major)...

Psychology
1.2K views

An article in the New York times states that there is a shocking new way to...

Biology
1.2K views

How do phagocytes recognize foreign cells or bacteria View Available Hint s O All the...

Biology
1.2K views

Why do we need to stain bacteria?To improve the contrast with the environment and make...

Biology
1.2K views

Which of the following firewalls is the cheapest and the quickest to install O A...

Basic Math
1.2K views

Calculate the surface area of each pyramid with the following values. (P = perimeter, b...

Basic Math
1.2K views

Kayla was asked to rewrite the polynomial expression x-14x + 49. How could she rewrite...

Statistics
1.2K views

Cars in a parking lot SUV 13 5 9 3 Red 6 Honda 5 7...

Calculus
1.2K views

A cylindrical can is partially filled with sand The radius of the cylindrical can is...

Accounting
1.2K views

Describe what the SDLC is and why you think it is important to accountants. Briefly...

Accounting
1.2K views

Prepare the company's statement of cash flows-indirect method for the year ended December 31, 2024....