You have just finished reading an article in a personnel journal about compensation plans. The turnover rate in your firm is too high, especially the cost of losing experienced employees. The CEO has indicated there is a 50% chance the budget for a new compensation plan would be available next year. You must decide which compensation plan warrants further study by your HR staff. Each study costs $3,000 and will be automatically charged against your budget as "Incident Cost" in your Budget Analysis and Report. You may only choose one response from the options given below; if the one you choose pertains only to production workers, you may assume that another system would also be instituted for management. a. A system based on the relative worth of jobs.
b. Many feel that higher level employees perform sufficiently different work and should be paid at a higher rate.
c. This may be contributing to an unspoken morale problem.
d. This system may help protect the firm against discrimination claims, as equal work would be paid equal pay.

Exercise 6-2 variable costing income statement; explanation of difference in net operating income [lo6-2] ida sidha karya company is a family-owned company located on the island of bali in indonesia. the company produces a handcrafted balinese musical instrument called a gamelan that is similar to a xylophone. the gamelans are sold for $970. selected data for the company’s operations last year follow: units in beginning inventory 0 units produced 200 units sold 180 units in ending inventory 20 variable costs per unit: direct materials $ 130 direct labor $ 300 variable manufacturing overhead $ 30 variable selling and administrative $ 15 fixed costs: fixed manufacturing overhead $ 63,000 fixed selling and administrative $ 25,000 the absorption costing income statement prepared by the company’s accountant for last year appears below: sales $ 174,600 cost of goods sold 139,500 gross margin 35,100 selling and administrative expense 27,700 net operating income $ 7,400 required: 1. under absorption costing, how much fixed manufacturing overhead cost is included in the company's inventory at the end of last year? 2. prepare an income statement for last year using variable costing.