Standard costs with an incentive plan Costouros Company's three production employ- ees work under an incentive and guaranteed wage plan. Each rotor blade assembly a worker completes in a week pays $30 with a bonus of $10 per unit for any units above 20. Each worker is guaranteed $500 per week regardless of the amount of production. The production record for the week of July 19 is:

The standard for the rotor assemblies is 20 units per week at $30 per unit. The company charges direct labor at standard and any difference between actual and standard labor as a labor rate or efficiency variance.

Transcribed Image Text:

Units Assembled Worker A 23 B 14 C 19