Zahur, a Compensation Analyst, Is Explaining the New Wage Structure

question 41

Multiple Choice

Zahur, a compensation analyst, is explaining the new wage structure to a group of managers. Grade 3 ranges from 201 to 300 points and $6.25 to $7.00. Grade 5 ranges from 401 to 500 points and $7.50 to $8.75. Which of the following statements would be true of Grade 4?

• A) 350 points is outside the range of Grade 4.
• B) The dollar spread for Grade 4 is less than $.75.
• C) The dollar spread for Grade 4 is greater than $1.25.
• D) The bottom of Grade 4 is lower than $6.50.
• E) The top of Grade 4 is greater than $7.50.

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Definitions:

Factory Overhead

Costs tied to manufacturing processes, excluding those for direct labor and materials.

Office Utilities

Expenses associated with the essential services used in an office, such as electricity, water, gas, and internet.

Selling and Administrative Expense

Operating expenses that are not directly tied to production, including costs related to sales, marketing, and general administration of a company.

Direct Materials

The raw materials directly traceable to the manufacturing of a product, forming a significant part of the production cost.