Group Bonus Plans. Employees of Dyson Enterprises work in groups of five, plus a group leader. Standard production for a group is 400 units for a 40-hour week. The workers are paid $6 an hour until production reaches 400 units; then a bonus of $1.20 per unit is paid for production over 400 units, with $1 being divided equally among the five workers and the remainder passing to the group leader (who is also paid a weekly salary of $300). Factory overhead is $7 per direct labor hour and includes the group leader’s earnings. LO3 The production record of a group for one week shows:

Hours Units Worked Produced Monday.

. 40 72 Tuesday.

. 40 81 Wednesday.

. 40 95 Thursday.

. 40 102 Friday.

. 40 102 Required:

(1) Compute the week’s earnings of the group (excluding the leader), the labor cost per unit, the overhead cost per unit, and the conversion cost per unit, based upon the above data and bonus plan, and assuming the bonus is computed based on aggregate results for the week. (Calculate unit costs to four decimal places.)

(2) Prepare a schedule showing daily earnings of the group (excluding the leader), unit labor cost, unit over¬ head cost, and the conversion cost per unit, assuming that the company uses the group bonus plan, as described on page 269, and assuming the bonus is computed for

(a) the day and

(b) the week.