Incentive Wage Plans. For the first week in March, the record of M. Roderick shows: LO3 Hours Units Worked Produced Monday.

. 8 180 Tuesday.

. 8 200 Wednesday.

. 8 220 Thursday.

. 8 224 Friday.

. 8 192 Roderick’s guaranteed hourly wage rate is $6 and standard production is 24 units per hour. Factory overhead per labor hour is $3.

Required:

(1)Assume Roderick receives 90% of the labor value of time saved during a day. Prepare a schedule to show Roderick’s pay, using the following headings:

Day Premium Wage Units Produced Total Pay Daily Wage Labor Cost per Unit (four decimal places)

Units above Standard Overhead per Unit (four decimal places)

Hours Saved Conversion Cost per Unit (four decimal places)

(2) Assume the 100-percent bonus plan is used (for each week’s total production). Prepare a schedule to show Roderick’s pay, using the following headings:

Hours Worked Base x Efficiency Ratio Units Produced Week’s Earnings Standard Production Labor Cost per Unit (four decimal places)

Efficiency Ratio (nearest %) Conversion Cost per Unit (four decimal places)

Base Wage

(3) Assume the daily quota is 192 units and the hourly rate increases 5% for each day the quota is achieved or exceeded. Prepare a schedule to show Roderick’s pay, using the following headings:

Day Amount Earned Units Produced Labor Cost per Unit (four decimal places)

Hourly Wage Conversion Cost per Unit (four decimal places)