One-Hundred-Percent Bonus Plan. Terry Pace, employed by the Orange City Canning Company, submitted the following labor data

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One-Hundred-Percent Bonus Plan. Terry Pace, employed by the Orange City Canning Company, submitted the following labor data for the first week in June:

Units Hours LO3 Monday.

. 270 8

Tuesday.

. 250 8

Wednesday.

. 300 8

Thursday.

. 240 8

Friday.

. 260 8

Required: Prepare a schedule showing Pace’s weekly earnings, the effective hourly rate, and the labor cost per unit, assuming a 100-percent bonus plan with a base wage of $9 per hour and a standard production rate of 30 units per hour. Assume the bonus is computed weekly, based on total production for the week. (Round the bonus percentage to two decimal places.)

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Cost Accounting

ISBN: 9780538828079

11th Edition

Authors: Lawrence H. Hammer, William K. Carter, Milton F. Usry

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