Incentive Wage Plans. Standard production for an employee in the Assembly Department is 20 units per hour in an 8-hour day. The hourly wage rate is $8.

Required: Compute an employee’s earnings under each of the following conditions (carrying all computa¬ tions to three decimal places):

(1)An incentive plan is used, with the worker receiving 80% of the time saved each day. Records indicate the following: LO3 Units Hours Monday.

. 160 8

Tuesday.

. 170 8

Wednesday.

. 175 8

(2) The 100-percent bonus plan is used and 860 units are produced in a 40-hour week.

(3) An incentive plan is used, providing an hourly rate increase of 5% for all hours worked each day that quota production is achieved. Records indicate the following:

Units Hours Monday. 160 8 Tuesday. 168 8 Wednesday. 175 8