Incentive Wage Plans. The company’s union steward complained to the Payroll Department that several union members’ wages had been miscalculated in the previous week. The following schedule indicates the incentive wage plan, hours worked, and gross wages calculated for each worker involved. LO3 Gross Wages Worker Incentive Wage Plan Total Hours Downtime Hours Units Produced Standard Units Base Rate per Books Dodd Straight piecework 40 5 400 —
$6.00 $284.00 Hare Straight piecework 46 —
455*
—
6.00 277.20 Lowe Straight piecework 44 4 420**
—
6.00 302.20 Ober Percentage bonus plan 40 —
250 200 6.00 280.00 Rupp Percentage bonus plan 40 —
180 200 5.00 171.00 Suggs Emerson efficiency system 40 —
240 300 5.60 233.20 Ward Emerson efficiency system 40 2 590 600***
5.60 280.00 * Includes 45 pieces produced during the 6 overtime hours.
** Includes 50 pieces produced during the 4 overtime hours. The overtime, brought about by the downtime, was necessary to meet a production deadline. *** Standard units for 40 hours production.
The minimum wage for a worker is the base rate, which is also paid for any downtime when the worker’s machine is under repair or there is no work. Workers are paid 150% of base rates for hours worked beyond the standard work week of 40 hours. The company’s union contract contains the following descrip¬ tion of each incentive wage plan:

(a) Straight piecework. The worker is paid at the rate of $.66 per piece produced.

(b) Percentage bonus plan. Standard quantities of production per hour are established by the Engineering Department. The worker’s production is divided by the standard quantity of production to detemiine an efficiency ratio. The efficiency ratio is then applied to the base rate to determine the worker’s hourly earnings for the period.

(c) Emerson efficiency system. A minimum wage is paid for total hours worked. A bonus, calculated from the following table of rates, is paid when the worker’s production exceeds 66%% of standard output or efficiency. The bonus rate is applied only to wages earned during productive hours.
Efficiency Bonus Up to 66/4%
0 66% —
79%
10%
80 —
99%
20%
100 —
125%
45%
Required: Calculate the proper amount of gross wages for each worker in question. Present your results in a schedule comparing each individual’s gross wages per books with the gross wages calculated.
(AICPA adapted)