Omar owns a factory of manufacturing shoes in Gala area. He aims to increase the profitability of the business, which can be done by encouraging his employees to be more productive. From that perspective Omar applies various methods for payment of remuneration and introduced different individual incentive plans. As an owner of the business, he knows that employees effort needs to be recognized and reworded, as result, a discount voucher of 20% of the employee purchases from Lulu hypermarket is given to each employee by the end of every month.

In his company the workers are getting paid based on time spent in doing the job and based on the amount of work completed. In order to smooth the shoes manufacturing process, team work is highly required and encouraged. Therefore, Omar applied two different group incentive plans, to reword and boost team work practice. First plan is focusing on given fifty percent of savings in labour cost will be distributed among the team members. Second plan is focusing on the saving in actual expenditure which is compared with budgeted expenditure.

Omar recorded the following information for the month of April, Normal rate per hour is OMR 12, Normal rate per unit is OMR 5, Standard working hours per day are 8 hours, Standard Output per hour is 20 units.

Based on the case given, using a straight piece rate method calculate Mazin payment for a day if he manufactures 120 shoes in a particular day.

a.

None of the given options

b.

1440 OMR

c.

960 OMR

d.

600 OMR

Based on the case given, using Time Wage System, calculate Nouf payment for a month considering that she worked for 30 days and manufactured 100 units in a month.

a.

360 OMR

b.

2880 OMR

c.

500 OMR

d.

None of the given options

The bonus which is the wages of time saved is calculated as 350 OMR. Based on Bedaux Point Premium System, how much should be paid to the foremen:

a.

87.5 OMR

b.

262.5 OMR

c.

None of the given

d.

84 OMR