Finance and Accounting
Sarah. £6.00. £4.75
The company works a 40 hour week and any units produced above 300 attract a bonus of £0.25. Last week production was 330 units. Once production is above 300 units the hourly rate is reduced and the bonus is applied to all units produced.
Scheme Two
At its largest production centre the company operates a group bonus scheme in which 20 skilled, 25 semi skilled, 20 unskilled operatives and 10 junior operatives participate in the scheme. Time saved on good units produced on group bonus jobs is shared in proportion to the time spent on them. Last week when 50 hours were worked by each employee, the following information was recorded.
Skilled. S skilled. Unskilled. Junior
Number in the group. 20. 25. 20. 10
Hrs on bonus jobs. 24. 24. 30. 40
Base rate per hour. £4.00. £3.00. £2.00. £1.00
% of base rate at
Which hours saved are
Paid (bonus). 50%. 40%. 30%. 20%
Production for Week
Product (unit). Standard. Super. De Luxe
Bonus time allowed
Per unit in minutes. 15 mts. 20 mts. 30 mts
Gross units produced
(Bonus). 1200. 3500 3100
Units rejected on which
Bonus time allowance
Withdrawn. 200. 500. 100
Additional Information
The company operates a 40 hour week.
Overtime is paid for at:
Time plus one half for the first 8 hours in excess of 40 hours
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