The Wilson Company Has Provided the Following Information: • Net

question 20

Multiple Choice

The Wilson Company has provided the following information: • Net sales,$200,000
• Net operating income,$40,000
• Net income,$20,000
• Average total assets,$125,000
• Average net fixed assets;$80,000
What is Wilson's fixed asset turnover ratio?

• A)1.60
• B)2.50
• C)0.25
• D)0.50

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Definitions:

Labor Quantity Variance

The difference between the actual hours of labor used and the standard hours expected for the level of production, often related to efficiency.

Direct Labor Hours

The total hours worked by employees directly involved in the manufacturing process.

Payroll

The total amount of wages, salaries, and other earnings paid by a business to its employees.

Labor Efficiency

The measure of the amount of work accomplished with a specific amount of labor input.