Other sets by this creator
Briefly discuss the advantages and disadvantages of each of these planning strategies: a. Maintain a level rate of output and let inventories absorb fluctuations in demand. b. Vary the size of the workforce to correspond to predicted changes in demand requirements. c. Maintain a constant workforce size, but vary hours worked to correspond to predicted demand requirements.
Diego Company has three employees-a consultant, a computer programmer, and an administrator. The following payroll information is available for each employee:
For the current pay period, the computer programmer worked 55 hours and the administrator worked 52 hours. The federal income tax withheld for all three employees, who are single, can be determined from the wage bracket withholding table in Exhibit 3 in the chapter. Assume further that the social security tax rate was 6.0%, the Medicare tax rate was 1.5%, and one withholding allowance is $75. Determine the gross pay and the net pay for each of the three employees for the current pay period.
Chemy Corporation produces three products in a monthly joint production process. During the first stage of the process liquids and chemicals costing are heated and three different compounds emerge: 3,000 gallons of Molecue worth per gallon are created from the steam; 10,000 gallons of Borphue worth are drained from the tank; and 1,000 gallons of the tank residue, labeled as Polygard, are sold as fertilizer for per gallon. Before Molecue is sold, it must be purified in another process that costs , and before the Polygard fertilizer is sold, it must be bottled at a price of per gallon.
c. BioMorphs has an offer to buy Polygard bulk at the split-off point without bottling for per month. What is the incremental profit (loss) to BioMorphs if it accepts the offer?