A company makes a single product. The direct labour operation involves three skilled machine operators who are currently paid on a time rate basis of RM 5.60 per hour worked. The company provides a group incentive bonus based on the total time saved among the three operators. The expected hours worked is a full 40-hour week for the group. A bonus of 50% of the time saved will be added as a percentage to the basic hourly rate for the actual hours worked.   The company’s factory records contained the following data for one week's output: Operators                                 A                     B                     C Units produced                       160                  140                  206 Hours worked                           36                    39                    40   Required: Calculate the gross wage payable to each machine operator for the week based on the current remuneration basis.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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A company makes a single product. The direct labour operation involves three skilled machine operators who are currently paid on a time rate basis of RM 5.60 per hour worked. The company provides a group incentive bonus based on the total time saved among the three operators. The expected hours worked is a full 40-hour week for the group. A bonus of 50% of the time saved will be added as a percentage to the basic hourly rate for the actual hours worked.

 

The company’s factory records contained the following data for one week's output:

Operators                                 A                     B                     C

Units produced                       160                  140                  206

Hours worked                           36                    39                    40

 

Required:

Calculate the gross wage payable to each machine operator for the week based on the current remuneration basis. 

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