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.
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.
Step by step
Solved in 2 steps with 2 images