QUESTION FOUR A. A company operates a piecework system of remuneration, but also guarantees its employees 80% of a time-based rate of pay which is based on K20 per hour for an eight hour working day. Three minutes is the standard time allowed per unit of output. Piecework is paid at the rate of K18 per standard hour. If an employee produces 200 units in eight hours on a particular day, what is the employee's gross pay for that day? [5 Marks] B. The purchase price of an item of inventory is K25 per unit. In each three months' period the usage of the item is 20,000 units. The annual holding costs associated with one unit equate to 6% of its purchase price. The cost of placing an order for the item is K20. Calculate: a) The Economic Order Quantity (EOQ) for the inventory item to the nearest whole unit [3 marks] b) The ordering cost Marks] c) The Holding cost [3 Marks] d) Total cost [1 Mark] [3