Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Silverline Ltd operates a group incentive scheme. A minimum hourly rate is guaranteed to each of the six employees in the group if actual output
Silverline Ltd operates a group incentive scheme. A minimum hourly rate is guaranteed to each of the six employees in the group if actual output for the week is less than the standard output. If actual output is greater than the standard output, the hourly rate of each employee is increased by 4% for each additional 600 units of output produced. The standard output for the group is 12,000 units for a 40 hour week. During the week ended 31 Dec., each employee in the group worked 40 hours; actual output and minimum hourly rates were as follows: Employee Actual Output Minimum hourly (units) rate $ Ram 2,500 0.60 Hari 2,700 1.00 Mohan 2,400 0.60 Shyam 2,500 0.80 Hanuman 2,460 0.60 Krishna 2,440 0.40 You are required to: (i) Calculate the earnings of each employee. (ii) Appraise the effectiveness to the company of this group incentive scheme
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