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5). Radika Engineering makes engineering components. The company has been manufactured 6,000 components per week, with six direct employees working a 40-hour work, at
5). Radika Engineering makes engineering components. The company has been manufactured 6,000 components per week, with six direct employees working a 40-hour work, at basic wage of RM4.00 per hour. Each worker operates independently. A new remuneration scheme is being introduced. Each employee will receive payment on the following basis: First 800 components per week Next 200 components per week All additional components per week RM0.16 per unit RM0.17 per unit RM0.18 per unit There will be guaranteed minimum wage of RM140.00 per week. It is expected that output will increase to 6,600 components per week with the new scheme. Required: Calculate the labour cost per unit by using: i. the existing remuneration system. ii. the new remuneration system. (3 marks) (5 marks)
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