Incentive Wage Plans. Standard production for assembly operation A94 is 20 units per hour. For the first week in May a worker’s record shows the following: LO3 Units Hours Monday.
. 140 8 Tuesday.
. 160 8 Wednesday.
. 175 8 Thursday.
. 180 8 Friday.
. 200 8 Required: Compute the employee’s earnings under each of the following conditions (carrying all computa¬ tions to three decimal places):
(1) An incentive plan is used with a guaranteed rate of $9 per hour and a premium of 60% of the time saved on production in excess of standard for each day.
(2) A piecework plan with rates of $.40 per unit below standard, $.48 at standard and up to 20% above stan¬ dard, and $.56 per unit for all production when output exceeds 20% above standard. Each day is com¬ puted independently.
(3) A 100-percent bonus plan is used with a base usage of $9 per hour. The bonus is computed based on total production for the week.