Aero Company Has Implemented a Gain Sharing Compensation Plan for Its

question 38

Multiple Choice

Aero Company has implemented a gain sharing compensation plan for its production employees. The plan is a Scanlon plan and the base period payroll costs are $10,000. The value of production in the base period was $100,000. The plan calls for labor savings to be added to, or excess labor costs to be deducted from, the bonus pool each quarter. The payroll costs and value of production in each quarter of the current year were:
-The labor savings for Quarter 1 are:

• A)($2,000).
• B)($1,000).
• C)$1,000.
• D)$2,000.

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Definitions:

AsS

Arsenic sulfide, a compound of arsenic and sulfur, known for its use in pigments and in various chemical reactions.

Arsenic

A toxic chemical element known by the symbol As, used in various industrial processes but also known for its poisonous properties.

EPA

The Environmental Protection Agency, a U.S. federal agency established to protect human health and the environment.

Drinking Water

Water that is safe and clean for human consumption, free from contaminants and harmful organisms.