Chapter 14: Structuring Compensation Plans Parkleigh Pharmacy is an upscale department store in Rochester, NY, who sells personal accessories and home decorations. Kaufmann’s is a departmental store based in Pennsylvania and has several stores in Rochester, NY. Kaufmann carries broad range of products and caters middle class customers. Salesperson at Parkleigh are paid a straight hourly wage (e. g,. no sales commission) and 30% discount from purchase any product from Parkleigh’s store. Salesperson at Kaufmann gets an hourly wage which is lower than Parkleigh’s hourly wage but gets 5% commission on sales. However, salesperson doesn’t get any discount on product they buy from Kaufmann. Based on the above situation answer the following questions: 1. Why does the compensation plan differ at the two firms? Explain why does Kaufmann pay sales commission and Parkleigh doesn’t?Why does Parkleigh provide discount and Kaufmann doesn’t? 2. Suppose, neither of the firms pay sales commission. Parkleigh provides an hourly wage plus employee discount and Kaufmann provides an hourly wage without any employee discount. Do you expect Kaufmann’s hourly wage to be higher or lower than Parkleigh’s? Why?

Is not a primary concern when writing menu copy.

Price and efficiency variances, journal entries. the schuyler corporation manufactures lamps. it has set up the following standards per finished unit for direct materials and direct manufacturing labor: direct materials: 10 lb. at $4.50 per lb. $45.00 direct manufacturing labor: 0.5 hour at $30 per hour 15.00 the number of finished units budgeted for january 2017 was 10,000; 9,850 units were actually produced. actual results in january 2017 were as follows: direct materials: 98,055 lb. used direct manufacturing labor: 4,900 hours $154,350 assume that there was no beginning inventory of either direct materials or finished units. during the month, materials purchased amounted to 100,000 lb., at a total cost of $465,000. input price variances are isolated upon purchase. input-efficiency variances are isolated at the time of usage. 1. compute the january 2017 price and efficiency variances of direct materials and direct manufacturing labor. 2. prepare journal entries to record the variances in requirement 1. 3. comment on the january 2017 price and efficiency variances of schuyler corporation. 4. why might schuyler calculate direct materials price variances and direct materials efficiency variances with reference to different points in time

For each example identify the most appropriate ctso