Table 13-5
the Following Table Shows the Production and Costs

question 5

Multiple Choice

Table 13-5
The following table shows the production and costs for the Wooden Chair Factory.
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$$\begin{array} { | c | c | c | c | c | c | c | } \hline \begin{array} { c } \text { Labor } \\\text { (Number of } \\\text { workers) }\end{array} & \begin{array} { c } \text { Capital } \\\text { (Number of } \\\text { machines) }\end{array} & \begin{array} { c } \text { Output } \\\text { (Chairs } \\\text { produced per } \\\text { hour) }\end{array} & \begin{array} { c } \text { Marginal } \\\text { Product of } \\\text { Labor } \\\text { (Chairs } \\\text { produced per } \\\text { hour) }\end{array} & \begin{array} { c } \text { Cost of } \\\text { Workers } \\\text { (Dollars) }\end{array} & \begin{array} { c } \text { Cost of } \\\text { Machines } \\\text { (Dollars }\end{array} & \begin{array} { c } \text { Total } \\\text { Cost } \\\text { (Dollars) }\end{array} \\\hline 1 & 2 & 5 & & & & \\\hline 2 & 2 & 10 & & & & \\\hline 3 & 2 & 20 & & & & \\\hline 4 & 2 & 35 & & & & \\\hline 5 & 2 & 55 & & & & \\\hline 6 & 2 & 70 & & & & \\\hline 7 & 2 & 80 & & & & \\\hline\end{array}$$ ​
-Refer to Table 13-5. Each worker at the Wooden Chair Factory costs $12 per hour. The cost of each machine is $20 per day regardless of the number of chairs produced. What is the total daily cost of producing at a rate of 55 chairs per hour if the factory operates 8 hours per day?

• A)$480
• B)$576
• C)$520
• D)$616

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Definitions:

Multiple Raters

Involves using several individuals to assess or evaluate employee performance, to increase reliability and objectivity of the evaluation.

Supervisor

An individual within an organization who oversees and directs the work of a group of employees, ensuring that tasks are completed efficiently and effectively, and that team goals are met.

Behaviourally Anchored Rating Scales

An evaluation tool that rates employee performance based on specific behaviors that are anchored to numerical scales, aiming to reduce subjectivity.

Content Validity

The extent to which a selection instrument, such as a test, adequately samples the knowledge and skills needed to perform a particular job