Martha and John work in a factory. The factory pays each worker $5 per hour plus $.25 per

piece of work completed. John is always paid more money than Martha, because John can work
faster than Martha can. This situation is:

A) Legal, because of a defined merit system.
B) Legal, because the pay is based on a difference in quantity or quality of work.
C) Legal, because of a seniority system.
D) Legal, because the pay is based on "some factor other than sex."
E) Illegal, because of pay discrimination.

B

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In the Dichter Co., indirect labor is budgeted for $72,000 and factory supervision is budgeted for $24,000 at normal capacity of 160,000 direct labor hours. If 180,000 direct labor hours are worked, flexible budget total for these costs is

a) $108,000. b) $96,000. c) $105,000. d) $99,000.

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The stronger a relationship the:

A) larger the absolute size of the correlation coefficient B) larger the strength coefficient C) closer to zero is the correlation coefficient D) larger, positive size of the correlation coefficient E) larger the beta

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