Payroll computation with incentive bonus LO₁Fifteen workers are assigned to a group project. The production standard calls for 500 units to be completed each hour to meet a customer's set deadline for the products. If the required units can be delivered before the target date on the order, a substantial premium for early delivery will be paid by the customer. The company, wishing to encourage the workers to produce beyond the established standard, has offered an excess production bonus that will be added to each project employee's pay. The bonus is to be computed as follows:

Required:
1. Determine the hourly bonus rate and the total amount of the bonus for the week.
2. What are the total wages of K. McClusky, who worked 40 hours at a base rate of $14 per hour?
3. What are the total wages of R. Ruwe, who worked 35 hours at a base rate of $18 per hour?

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a. Group's excess production over standard 50% Standard units for week b. Individual's hourly wage rate x bonus percentage bonus percentage hourly bonus rate c. Hourly wage rate + hourly bonus rate = new hourly rate for week d. Total hours worked x new hourly rate = earnings for week The average wage rate for the project workers is $15 per hour. The produc- tion record for the week shows the following: Hours Production Worked (Units) Monday 112 61,040 Tuesday 112 60,032 Wednesday 112 60,480 Thursday 112 65,632 Friday. 108 57,344 Saturday... 60 26,000 616 330,528