Scenario 14.1 John Welk Is the Human Resource Manager for Ergo-Tot, a Ergo-Tot

question 3

Multiple Choice

Scenario 14.1
John Welk is the human resource manager for Ergo-Tot, a manufacturer of ergonomically designed baby strollers. Ergo-Tot is considered a small company, employing just fifty people. Located in California, Ergo-Tot is rapidly expanding, due to an increased demand by new parents for ergonomically correct strollers for their babies. Ergo-Tot's manufacturing process involves the use of very new, very complex patented machinery that is exclusive to the company. The training of manufacturing employees to effectively operate this machinery is very important to Ergo-Tot.
The company has just invested a large amount of capital in several new machines to support this demand growth. Therefore, Mr. Welk has a limited training budget available to train machine operators on the new machinery. He is in the process of assessing the capabilities of Ergo-Tot's existing employees as well as the changes in job-related needs resulting from the implementation of the new machinery. Mr. Welk needs his machine operators to be up to speed as quickly as possible. He also wants to build employee motivation with the work environment by moving his employees through several different jobs over time and by giving them more control over the work being performed.
-Refer to Scenario 14.1. When Mr. Welk moves his employees around into different jobs, this is called:

• A) general training.
• B) specific training.
• C) job rotation
• D) job enrichment
• E) job enlargement

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Definitions:

Direct Labor-Hours

The total hours worked by employees directly involved in manufacturing a product or delivering a service.

Fixed Manufacturing Overhead

refers to the manufacturing costs that do not vary with the volume of production, such as rent and salaries.

Job-Order Costing System

An accounting method used to allocate costs to specific jobs or orders, typically used in situations where products or services are distinct and made to order.

Predetermined Overhead Rate

An estimated charge per unit of activity used to allocate manufacturing overhead costs to products or job orders, calculated before the period begins based on expected costs and activity levels.