14-7. Incentive Wage Plans. The company's union steward complained to the Payroll Department that several union members' wages had been miscalculated in the previous week. The schedule below indicates the wages and conditions of the earnings of the workers involved: Down Units Stan- Gross Wages Worker Incentive Wage Plan Total Time Pro- dard Base Hours Hours duced Units Rate per Books DODD Straight piecework HARE Straight piecework LOWE Straight piecework 46 OBER Percentage bonus plan RUPP Percentage bonus plan SUGGS Emerson Efficiency WARD Emerson Efficiency 40 44444 40 5 400 $3.00 $142.00 455* 3.00 138.60 4 420** 3.00 151.10 40 250 200 3.00 140.00 40 - 180 200 2.50 85.50 40 240 300 2.80 116.60 2 590 *Includes 45 pieces produced during the 6 overtime hours. 600*** 2.80 140.00 **Includes 50 pieces produced during the 4 overtime hours. The overtime, brought about by the "down time," was necessary to meet a production deadline. ***Standard units for 40 hours production. The company's union contract contains the following description of the systems for computing wages in various departments of the company. The minimum wage for a worker is his base rate, which is also paid for any down time when the worker's machine is under repair or he is without work. The standard work week is 40 hours. Workers are paid 150% of base rates for over- time production. (a) Straight Piecework. The worker is paid at the rate of $.33 per piece produced. (b) Percentage Bonus Plan. Standard quantities of production per hour are estab- lished by the Engineering Department. The worker's average hourly production, determined from his total hours worked and his production, is divided by the standard quantity of production to determine his efficiency ratio. The efficiency ratio is then applied to his base rate to determine his hourly earnings for the period. 432 PLANNING AND CONTROL OF MATERIALS AND LABOR PART IV (c) Emerson Efficiency System. A minimum wage is paid for production up to 66%% of standard output or "efficiency." When the worker's production exceeds 66% of the standard output, he is paid at a bonus rate. The bonus rate is determined from the following table: Efficiency Up to 66%/3% 6623%- 79% 80% 100% 990 10 125% Bonus 0% 10% 20% 10 45% Required: A schedule comparing each individual's gross wages per books with the gross wages calculated.