Mauricio AmaroLLCrelevant range of activity is 4,000 units to 10,000 units. The Direct Labor Cost is 60% of prime costs. When it produces and sells 7,000 units, its average costs per unit are as follows: Average Cost per Unit Prime Costs 24.00 Variable manufacturing overhead 3.75 Fixed manufacturing overhead 4.50 Fixed Period Costs 2.50 Sales commissions 1.50 Variable administrative expense 2.00 Determined the Total Product Cost when 9,000 units are produced and soldSolution: Data:What is the Conversion costfor 8,000 units?Determined total Direct Product Costfor 7,500 units;Determined Total Indirect Product Costsor 8,500 units.

Amanufacturing firm is considering overhauling the existing compensation strategy. currently every front line employee who works on the assembly line earns the same hourly wage. ideally, management would like to institute a new pay system that involves pay-for-performance. which of the following recommendations is both consistent with scientific management's general emphases and generally good advice for management of this firma. the firm should adopt a differential pay system with one pay level for average performance, and a higher level for good performance. b. the firm should adopt a differential pay system, but the firm should modify it from its original design and provide many different levels of pay associated with different performance levels. c. the firm should understand worker psychology and to focus on pay as the key motivator. d. all of the abovee. none of the above