Case 3: Support Group Too Much Motors' service department is organized using the support group approach. During the past week all six technicians in the group worked 42 hours. Because they are on a support group pay plan, Cathy, the team leader, is paid an extra $1 on top of what she already earns, for every flat-rate hour produced by the entire team for her efforts on guiding and directing them. The flat-rate hours and flat-rate pay for the technicians are: Fred - 40 hrs. @ $16; Kevin - 44 hrs. @ $18; Josh - 34 hrs. @ $12 Cathy 62 hrs. @ $24; Sal - 56 hrs. @ $17; Curtis - 58 hrs. @ $15 You Decide a) What did each of the six technicians earn last week? Fred Kevin Josh Curtis b) How many flat-rate hours did the entire shop produce last week? c) If Too Much Motors' charges $90 per flat-rate hour, what were their gross labor sales for last week? d) What was Too Much Motors' gross profit for last week? e) What was their gross profit percentage for last week? (Use 2 decimal places. Ex: 47.56) Cathy Sal

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Answer A and B
Case 3: Support Group
Too Much Motors' service department is organized using the support group approach. During the past week
all six technicians in the group worked 42 hours. Because they are on a support group pay plan, Cathy, the
team leader, is paid an extra $1 on top of what she already earns, for every flat-rate hour produced by the
entire team for her efforts on guiding and directing them. The flat-rate hours and flat-rate pay for the
technicians are:
Fred - 40 hrs. @ $16; Kevin - 44 hrs. @ $18; Josh - 34 hrs. @ $12
Cathy 62 hrs. @ $24; Sal - 56 hrs. @ $17; Curtis - 58 hrs. @ $15
You Decide
a) What did each of the six technicians earn last week?
Fred
Cathy.
Kevin
Sal
Josh
Curtis
b)
How many flat-rate hours did the entire shop produce last week?
c) If Too Much Motors' charges $90 per flat-rate hour, what were their gross labor sales for last week?
d) What was Too Much Motors' gross profit for last week?
e)
What was their gross profit percentage for last week?
(Use 2 decimal places. Ex: 47.56)
Transcribed Image Text:Case 3: Support Group Too Much Motors' service department is organized using the support group approach. During the past week all six technicians in the group worked 42 hours. Because they are on a support group pay plan, Cathy, the team leader, is paid an extra $1 on top of what she already earns, for every flat-rate hour produced by the entire team for her efforts on guiding and directing them. The flat-rate hours and flat-rate pay for the technicians are: Fred - 40 hrs. @ $16; Kevin - 44 hrs. @ $18; Josh - 34 hrs. @ $12 Cathy 62 hrs. @ $24; Sal - 56 hrs. @ $17; Curtis - 58 hrs. @ $15 You Decide a) What did each of the six technicians earn last week? Fred Cathy. Kevin Sal Josh Curtis b) How many flat-rate hours did the entire shop produce last week? c) If Too Much Motors' charges $90 per flat-rate hour, what were their gross labor sales for last week? d) What was Too Much Motors' gross profit for last week? e) What was their gross profit percentage for last week? (Use 2 decimal places. Ex: 47.56)
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