Cooper Company has implemented a gain sharing compensation plan for its productionemployees. The plan is a Scanlon plan and the base period payroll costs are $10,000. The valueof production in the base period was $100,000. The plan calls for labor savings to be added to,or excess labor costs to be deducted from, the bonus pool each quarter. The payroll costs andvalue of production in each quarter of the current year were:1.Quarter1234TotalThe base ratio is:A) 0.09.B) 0.10.C) 0.105.D) None of the above are correct.Payroll$ 9,00010,00011,00012,000$42,000Production$110,000100,000120,000130,000$460,000to

The following formula used as follows:-Base ratio = Base period payroll cost / Value of production…

Answered: the chose 1. The base ratio is: A)…

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the chose 1. The base ratio is: A) 0.09. B) 0.10. C) 0.105. D) None of the above are correct.

Survey of Accounting (Accounting I)

8th Edition

ISBN:9781305961883

Author:Carl Warren

Publisher:Carl Warren

Chapter11: Cost-volume-profit Analysis

Section: Chapter Questions

Problem 4CDQ: How would each of the following costs be classified if units produced is the activity base? a....

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Question

Cooper 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:
1.
Quarter
1
2
3
4
Total
The base ratio is:
A) 0.09.
B) 0.10.
C) 0.105.
D) None of the above are correct.
Payroll
$ 9,000
10,000
11,000
12,000
$42,000
Production
$110,000
100,000
120,000
130,000
$460,000
to

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