Answer:
C) One worker can easily sabotage the productivity of other workers.
Explanation:
This is a form of compensation by merit that comprises the performance of a team as a whole, so this is a way of motivating both group work and individual work.
In the scenario above, we can see that this compensation plan would be effective in leveraging the performance of individual workers, and of teams, because if each member of the team is more productive, it will benefit the team as a whole. And this method will not affect the productivity of other teams, as each team will be encouraged and engaged to do the best job possible to achieve merit pay.
The alternative that does not correspond to the question that this incentive may be better than other methods to motivate workers to work harder, is the one that says that a worker can sabotage the productivity of other workers, as that worker is also likely to be engaged in not sabotaging the work of other team members, as the remuneration bonuses depend on the effort of the entire team to work together, and not just one employee.
Answer:
A. $720 Unfavorable
B. $840 Unfavorable
C. $1,560 Unfavorable
D. $800 Favorable
E. $30 Unfavorable
F. $790 Unfavorable
Explanation:
The computation of given question is shown below:-
A. Sales = (Budget quantity - Actual quantity) × Budgeted sale price
= ($8.10 - $7.80) × 2,400
= $0.3 × 2,400
= $720 Unfavorable
B. Variable manufacturing = (Actual variable cost - Budgeted variable manufacturing cost) × Budgeted sale price
= ($4.25 - $3.90) × 2,400
= $0.35 × 2,400
= $840 Unfavorable
C. Contribution margin = ((Budgeted sales price - Budgeted variable manufacturing cost) - (Actual sale price - Actual variable cost)) × Budgeted sale price
= (($8.10 - $3.90) - ($7.80 - $4.25)) × 2,400
= $0.65 × 2,400
= $1,560 Unfavorable
D. Fixed manufacturing = Actual fixed manufacturing cost - Budgeted Fixed manufacturing cost
= $1,300 - $2,100
= $800 Favorable
E. Fixed selling and admin cost = Actual selling and administrative costs - Budgeted fixed selling and administrative cost
= $530 - $500
= $30 Unfavorable
F. Net income (loss) = Contribution margin - Fixed manufacturing + Fixed selling and admin cost
= $1,560 - $800 + $30
= $790 Unfavorable
