(a) With reference to wages systems, what is meant by:

(i) piece rates

(ii) time rates

(iii) standard hours?

(d) What are the advantages and disadvantages to a firm of introducing a bonus system?

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(b) Bath Ltd. has a payments scheme specifically designed for trainees. Under the scheme earnings are calculated as follows: Earnings = Rate per hour x (Standard hours x Clock hours) If the rate per hour is 3.60 and five standard hours are allowed for a job, show (i) the earnings accruing if clock hours are seven; (ii) how standard rates are earned when clock hours equal standard hours. (c) A firm's bonus scheme pays employees a bonus of 50 per cent of the time saved in completing a job. Harry Jones, a new employee, is confused because the basic pay for a job when no time is saved is greater than when four hours are saved. Use the figures in the following table to resolve Harry's confusion: Time Time Rate allowed taken per Basic Bonus (Hours) (Hours) hour Pay Pay Total Pay 8 8 84 8 4.50 36 - 36 4.50 18 25 27