Question
Prestige Ornaments Ltd. (POL) manufactures ornaments for export trade . Jobs are allocated to two operators John and Alex with bonus paid for hours saved
Prestige Ornaments Ltd. (POL) manufactures ornaments for export trade . Jobs are allocated to two operators John and Alex with bonus paid for hours saved .
In a period of one week , John made 186 units and Alex made 210 units for which the time allowed of 30 standard minutes and 25 standard minutes per unit respectively was credited.
The basic wage rate was Sh.180 per hour for both employees. For every hour saved, a bonus was paid at 20% of the basic wage rate . Hours worked in excess of basic week hours , were paid at the basic wage rate plus two thirds of the wage rate . John completed his job in 44 hours and Alex completed his jo in 39 hours. A basic week has 40 hours.
Required:
For each operator
The amount of bonus payable (4 Marks)
The total gross wage payable (3 Marks)
The wage cost per unit (3 Marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started