QUESTION TWO (10 Marks)

Calculate the daily remuneration of W. Rooney using Taylors differential piecework system from

the information provided. (5 marks)

INFORMATION

The following information relates to W. Rooney, an employee of Manchester Enterprises:

2.1

• W. Rooneys standard workday is 9 hours. His standard production time is 55 units per hour.
• His normal wage rate is R73 per hour. He is remunerated in terms of Taylors differential piecework system whereby the following premium applies:
• 80% of piecework rate if below standard
• 120% of piecework rate if standard or above standard
• W. Rooneys production is 300 units per day.

2.2 Use the information provided below to calculate the following: (5 marks)

INFORMATION

Monthly sales of West Ham Limited is 4 400 units at R150 a unit. The purchase price is R90 per unit. The carrying cost amounts to 10% of the purchase price and the ordering cost is R62 per order.

2.2.1 Calculate the Economic order quantity (EOQ) (3 marks)

2.2.2 Calculate the Number of orders that need to be placed for the year (2 marks)