If the Standard Time for Producing One Unit of Work

question 57

Multiple Choice

If the standard time for producing one unit of work in a job paying $5.00 per hour were set at 6 minutes, what would the piece rate be?

• A) $1.00 per unit
• B) $1.50 per unit
• C) $0.50 per unit
• D) $0.75 per unit

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Definitions:

Contribution Margin

The difference between sales revenue and variable costs, representing the portion of sales revenue that contributes to covering fixed costs and generating profit.

Sales Volume

The quantity of products or services sold within a specific period, critical for revenue and profitability analysis.

Mixed Cost

An expense that contains both a fixed cost component and a variable cost component, changing in total with the level of activity but not proportionately.

High-low Method

An approach to estimate fixed and variable costs by using the highest and lowest levels of activity.