Each of the five (5) workers in a factory is being paid $250 per day. For every unit produced in excess of 25 units in one day, a worker is paid $12. Fixed factory overhead per annum is $198,000 and there are approximately 330 working days in one year. Production data for July 6 and 7, 20C show the following number of units produced by each worker: July 6 = Cass - 25, Jen - 27, Owen - 24, Henry - 24, Miles - 28; July 7 = Cass - 26, Jen - 26, Owen - 28, Henry - 27, Miles - 26. How much savings in fixed factory overhead per unit was effected assuming that additional output is due to the incentive given?
Each of the five (5) workers in a factory is being paid $250 per day. For every unit produced in excess of 25 units in one day, a worker is paid $12. Fixed factory overhead per annum is $198,000 and there are approximately 330 working days in one year. Production data for July 6 and 7, 20C show the following number of units produced by each worker: July 6 = Cass - 25, Jen - 27, Owen - 24, Henry - 24, Miles - 28; July 7 = Cass - 26, Jen - 26, Owen - 28, Henry - 27, Miles - 26. How much savings in fixed factory overhead per unit was effected assuming that additional output is due to the incentive given?
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Each of the five (5) workers in a factory is being paid $250 per day. For every unit produced in excess of 25 units in one day, a worker is paid $12. Fixed factory
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step 1 Introduction
VIEWStep 2 Table showing the Computation of incentive
VIEWStep 3 Computation of factory overhead per unit when incentive is not given
VIEWStep 4 Computation of factory overhead per unit when incentive is given
VIEWStep 5 Statement Showing Saving in Fixed factory overhead effected
VIEWStep 6 Working Notes
VIEW
Step by step
Solved in 6 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education