One-Hundred-Percent Group Bonus Plan. The Forming Department of the Plastic-Powell Company employs six workers on an 8-hour
Question:
One-Hundred-Percent Group Bonus Plan. The Forming Department of the Plastic-Powell Company employs six workers on an 8-hour shift at $12.50 per hour. Factory overhead is $120 per hour. Production for the sec- 7?^. ond week of June shows: Monday, 460 units; Tuesday, 475 units; Wednesday, 492 units; Thursday, 500 units; Jjr and Friday, 510 units. The company has recently installed a group 100-percent bonus system with a standard production for the group of 60 units per hour. The bonus is computed for each day. The controller asks that an analysis of the week’s production costs be made. LO3 Required: Prepare a schedule showing earnings in the department, the unit labor cost, the unit overhead cost, and the total cost per unit. (Round unit costs to three decimal places.)
Step by Step Answer:
Cost Accounting
ISBN: 9780538828079
11th Edition
Authors: Lawrence H. Hammer, William K. Carter, Milton F. Usry