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In a factory bonus system, bonus hours are credited to the employees in the proportion of time taken which time saved bears to time allowed.

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In a factory bonus system, bonus hours are credited to the employees in the proportion of time taken which time saved bears to time allowed. Jobs are carried forward from one week to another. No overtime is worked and payment is made in full for all units worked on, including those subsequently rejected. From the following information you are required to calculate for each employee (a) the bonus hours and amount of bonus earned; (b) the total wages cost, and (c) the wages cost of each good unit produced. B Basic wage-rate per hour (Re.) 0.25 0.40 0.30 Units produced 2,500 2,200 3,600 Time allowed per 100 units 2 hrs. 36 min. 3 hrs. 1 hr. 30 min. Time taken 52 hours 75 hours 48 hours Rejects 100 units 40 units 400 units

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