The Records of Pam Company Showed the Following About a Machine

question 106

Multiple Choice

The records of Pam Company showed the following about a machine on January 1, 20X8: Purchased 1/1/20X5 for $35,000 Accumulated depreciation at January 1, 20X8, $26,400 On July 1, 20X8, the machine was sold for $7,000. Depreciation for the first six months of 20X8 was $1,467. The gain or loss on disposal would be which of the following?

• A) $133 loss.
• B) $133 gain.
• C) $1,600 loss.
• D) $1,600 gain.

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Definitions:

Level Strategy

A business approach that maintains a steady production rate and workforce level, even during fluctuating demand periods.

Aggregate Planning

A methodology in operations management aimed at determining optimal production, workforce levels, and inventory levels, to meet forecasting demand over a medium-range period.

Plant Capacity

Plant capacity is the maximum output that a manufacturing facility can produce under normal conditions within a given time period.

Regular Time

The standard hours during which an organization operates or an employee is expected to work, excluding overtime.