Question
Martina Ltd assembles a product (Total) from various components using three operative staff (Mutinta, Mundia, Mumba) each working a 40 hour week. The company pays
Martina Ltd assembles a product (Total) from various components using three operative staff (Mutinta, Mundia, Mumba) each working a 40 hour week. The company pays overtime at time and half and a bonus of 75% of time saved at the normal hourly rate. The date below relates to Martina Ltd operation in week 10: OPERATIVE STAFF MUNTITA MUNDIA MUMBA Total output unit 530 600 490 Total hours worked 60 hours 45 hours 48 hours Wage rate per hour K18 K20 K15 Required: (a) Calculate the total pay for each of the employees in week 10 showing basic wage, overtime premium and bonus. (16 marks) (b) Martina Ltd Management wishes to adopt a piece work scheme to increase the weekly output. State two advantages and two disadvantages of implementing a piece work scheme to Kabwe Ltd.
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