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14-4. Group Bonus Plan. Employees of Chianti Enterprises work in groups of five, plus a group leader. Standard production for a group is 400
14-4. Group Bonus Plan. Employees of Chianti Enterprises work in groups of five, plus a group leader. Standard production for a group is 400 units for a 40-hour week. The workers are paid $4 an hour until production reaches 400 units; then a bonus of $1.20 per unit is paid, with $1 being divided equally among the five workers and with the remainder passing to the group leader (who is also paid a weekly salary of $150). Factory overhead is $3 per direct labor hour and includes the group leader's earnings. The production record of a group for one week shows: Hours Worked Units Produced Monday... 40 72 Tuesday.. 40 81 Wednesday. 40 95 Thursday. 40 102 Friday.. 40 102 430 PLANNING AND CONTROL OF MATERIALS AND LABOR PART IV Required: (1) Based upon the above data, show the week's earnings of the group (excluding the leader), the labor cost per unit, the overhead cost per unit, and the conversion cost per unit (carrying figures to three decimal places). (2) Assuming Chianti Enterprises uses the group bonus plan, a schedule showing daily earnings of the group (excluding the leader), unit labor cost, unit overhead cost, and the conversion cost per unit.
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