Calculate the total earnings and group bonus payable to a group of employees working for Firri Ltd

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Calculate the total earnings and group bonus payable to a group of employees working for Firri Ltd based on the following information. The group consists of five employees plus a supervisor. Standard output is 1,000 units for a 40-hour week and the employees are paid

£6 per hour until output reaches 1,000 units. After 1,000 units has been passed, a bonus of £2.50 per unit is paid, with £2 being divided equally among the five employees and the remainder paid to the supervisor. For the relevant week, 200 man hours were worked and a total of 1,250 units were produced.

You should also calculate the earnings of the supervisor given that he is paid a salary of

£350 per week, including his bonus, together with a calculation of the unit total labour cost for the week.

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