Jane Is Deciding Between Two Sales Positions

question 34

Multiple Choice

Jane is deciding between two sales positions. She can work for Marcy s and receive per hour or for Gigi s, where she earns per hour but also receives a $30 commission per week. The two lines in the following figure represent the money Jane will make for working at each of the jobs. . From the sketch of the graphed lines, how many hours would Jane have to work to earn the same amount at each of the positions? . If Jane expects to work less than hours a week, which job should she choose? . If Jane expects to work more than hours a week, which job should she choose?

• A) . hours . Gigi s . Marcy s
• B) . hours . Gigi s . Marcy s
• C) . hours . Marcy s . Gigi s
• D) . hours . Gigi s . Marcy s
• E) . hours . Marcy s . Gigi s

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Definitions:

Manufacturing Overhead

All indirect costs associated with manufacturing, not including direct materials and direct labor.

Plantwide Overhead Rate

A single overhead rate calculated by dividing total factory overhead by a base, used throughout a manufacturing plant for allocating overhead costs to products.

Activity-Based Costing

A method of cost accounting that assigns costs to products or services based on the resources they consume.

Manufacturing Overhead

The indirect costs associated with manufacturing, such as utilities, maintenance, and salaries not directly involved in production.