Group Bonus Plan. Ten employees are working as a group in a particular manufacturing department. When the

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Group Bonus Plan. Ten employees are working as a group in a particular manufacturing department. When the weekly production of the group exceeds the standard number of pieces per hour, each worker in the group is paid a bonus for the excess production in addition to wages at hourly rates. The amount of bonus is computed by first determining the percentage by which the group's production exceeds the standard; one- half of this percentage is then applied to a wage rate of $9 to determine an hourly bonus rate. The standard rate of production before a bonus can be earned is 200 pieces per hour for total hours worked. LO3 Production Record for the Week Hours Worked Production Monday. 80 17,824 Tuesday. 74 16,206 Wednesday. 80 18,048 Thursday. 76 17,480 Friday. 72 16,733 Required: On the basis of the production record, compute:

(1) The group’s bonus for each day and for the week.

(2) The week’s earnings of each employee.

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Cost Accounting

ISBN: 9780538828079

11th Edition

Authors: Lawrence H. Hammer, William K. Carter, Milton F. Usry

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