Information from the Records of the Cain Corporation for August

question 148

Multiple Choice

Information from the records of the Cain Corporation for August was as follows:
$\begin{array}{llr} \text {Sales } &\$1,230,000\\ \text { Selling and administrative expenses } &210,000\\ \text { Direct materials used } &264,000\\ \text { Direct labour } &300,000\\ \text {Factory overhead* } &405,000\\\end{array}$
*variable overhead is $205,000,fixed overhead is $200,000
$\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$ $\quad$$\text { Inventories }$
$\begin{array}{lrr}& \underline{\text {August 1}}& \underline{\text {August 31}}\\\text { Direct materials } & \$ 36,000 & \$ 42,000 \\\text { Work in process } & 75,000 & 84,000 \\\text { Finished goods } & 69,000 & 57,000\end{array}$

-Refer to the figure.What is the conversion cost?

• A)$564,000
• B)$705,000
• C)$960,000
• D)$1,179,000

Distinguish between workforce reduction, work redesign, and systemic change as strategies of downsizing.

Identify the impact of downsizing on organizational culture and employee morale.

Differentiate between outsourcing, offshoring, and outplacement within the context of organizational restructuring.

Recognize the importance of ethical considerations and justice (interactional, procedural, distributive) in the downsizing process.

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Definitions:

Volume

The amount of space an object or substance occupies, measured in liters, cubic meters, or other units of capacity.

°C

Degrees Celsius, a unit of temperature on the metric scale.

Moles

A measure of quantity in chemistry representing 6.022 x 10^23 entities of a substance.

Atm

A unit of pressure defined as exactly equal to 101,325 Pa, representing atmospheric pressure at sea level.