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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Related Book For
Cost Accounting
ISBN: 9780538828079
11th Edition
Authors: Lawrence H. Hammer, William K. Carter, Milton F. Usry
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