Question
Ardhi Company Ltd is considering the type of remuneration scheme to adopt for its employees. The following information is availed to you for your analysis:
Ardhi Company Ltd is considering the type of remuneration scheme to adopt for its employees. The following information is availed to you for your analysis: Employees Mambo Saidi Mbogo Zainabu Actual hours worked 38 36 40 34 Hourly rate of pay (Sh.) 30 20 25 36 Output (Units) A 42 120 - 120 B 72 76 - 270 C 92 - 50 - Output A B C Standard time allowed per unit (minutes) 6 9 15 For the calculation of piecework earnings the company value each minute at a rate of Sh.0.5. Required: Calculate the earnings for each employee using: Basic guaranteed hourly rates. (5 marks) Piecework rates. (5 marks)
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