QUESTION 1.

The Italian furniture Center employs two carpenters Leo and Romana. They are paid a basic rate of 1000 per hour. Overtime is paid at double the normal rate. The normal working week is forty hours. During the week Leo and Romana were assigned 30 chairs and 50 stools respectively. The time allowed is two hours for each chair and one hour for each stool.

Leo worked 45 hours including overtime to complete the chairs assigned to him while Romana completed the assigned stools in 38 hours but worked full week (i.e. worked 2 hours on another task)

On inspection at the end of the week five chairs and ten stools were found to be defective. The carpenters are not penalized for defective units.

Required

1. Calculate the labour cost per unit of good production under Halsey Scheme, Halsey weir Scheme and Rowan Scheme

QUESTION 2

Two carpenters Martin and Luther are employed by the Roy Furniture Centre. They are paid a basic rate of Sh. 1,000 per hour. Overtime is paid at double the normal rate. The time saved on time allowed for assigned piece work is paid for at 50% of the basic rate.

The normal working week is 40 hours.

During the week Martin and Luther were assigned 30 chairs and 50 stools respectively. The time allowed is 2 hours for each chair and 1 hour for each stool.

Martin worked 45 hours including overtime to complete the chairs assigned to him while Luther completed the assigned stools in 40 hours.

On inspection at the end of week, 5 chairs and 10 stools were found to be defective. However, the carpenters are paid for all the units completed including the defective ones.

REQUIRED;

1. The amount of bonus payable to each carpenter
2. The labour cost per unit of good production.