3. A factory department that is an essential part of the organization and provides support to the factory but does not work directly on the product is a(n):

		variable department.
		production department.
		service department.
		flexible department.

5. Matching.

A guaranteed amount of pension benefits paid to a retired employee based on a formula that considers the employees past level of earnings and length of service with the company.

A form prepared for each employee showing the employees earnings each pay period and cumulative earnings for each quarter and for the year.

A pension plan that is completely funded (paid for) by the company.

An additional rate of pay added to an employees regular rate as compensation for working an evening or night shift.

A plan specifying the maximum amount of contributions that can be made to the plan by employer and employee.

A wage plan under which an employee is paid an established rate per hour for each hour worked.

A pension plan that requires a partial contribution made by the employee.

A. Employee earnings record

B. Contributory plan

C. Noncontributory plan

D. Bonus pay

E. Defined contribution plan

F. Defined benefit plan

G. Hourly rate plan

H. Overtime pay

I. Shift premium

6. Harrison Carter, who is classified as direct labor, earns $800 per week and is entitled to three weeks of vacation and 10 holidays each year. How much should be accrued for his vacation each week?

		$85.11
		$46.15
		$48.98
		$76.92

30. Kater Company manufactures shelving units. The company receives pre-cut wood, drills holes in the wood so that movable shelves may be installed, then assembles and paint the units. Classify each of the following items of factory overhead as either fixed or variable cost. a. Supervisor of the Drilling Department b. Oil used to lubricate drill press machines c. Propane for forklift trucks used to move the material from the Drilling Department to the Assembly Department d. Natural gas used to heat the plant e. Security guard f. Insurance on factory building g. Electricity to power drill press machines h. Rent of factory building