The following information relates to Agric. Cc manufacturing, a business that is considering the introduction of...

   

Transcribed Image Text:

The following information relates to Agric. Cc manufacturing, a business that is considering the introduction of a piece-work incentive scheme in one of its departments. The company employed 6 employees. Current Payroll: Basic working week is 38 hours Over-time premium 20% of normal pay grade. Normal grade A pay rate is N$ 22 per hour. Normal grade B pay rate is N$ 18 per hour. Normal Hours Normal Pay Grade Employee Normal Units Worked Produced 1 A A 41 170 44 170 3 40 B 150 150 4 38 38 45 B 160 6. A 180 Piecework Incentive Scheme ProposalUnder the proposed piecework incentive scheme, the standard time allowance would be 20 minutes per unit. The piecework rate would be based on grade A basic hourly rates, with a standard piecework enhancement of 6%. All employees would receive the same piecework rate. Required: (a) Outline the purpose of an incentive scheme. [6 Marks] (b) Calculate the gross pay due to each employee based on the current payroll terms. [6 Marks] (c) Calculate the standard piecework rate on the basis of the proposed piecework incentive scheme. [6 Marks] (d) Calculate the gross pay due to each employee under the terms of the proposed incentive scheme. [6 Marks] [SUBTO The following information relates to Agric. Cc manufacturing, a business that is considering the introduction of a piece-work incentive scheme in one of its departments. The company employed 6 employees. Current Payroll: Basic working week is 38 hours Over-time premium 20% of normal pay grade. Normal grade A pay rate is N$ 22 per hour. Normal grade B pay rate is N$ 18 per hour. Normal Hours Normal Pay Grade Employee Normal Units Worked Produced 1 A A 41 170 44 170 3 40 B 150 150 4 38 38 45 B 160 6. A 180 Piecework Incentive Scheme ProposalUnder the proposed piecework incentive scheme, the standard time allowance would be 20 minutes per unit. The piecework rate would be based on grade A basic hourly rates, with a standard piecework enhancement of 6%. All employees would receive the same piecework rate. Required: (a) Outline the purpose of an incentive scheme. [6 Marks] (b) Calculate the gross pay due to each employee based on the current payroll terms. [6 Marks] (c) Calculate the standard piecework rate on the basis of the proposed piecework incentive scheme. [6 Marks] (d) Calculate the gross pay due to each employee under the terms of the proposed incentive scheme. [6 Marks] [SUBTO

Answer rating: 100% (QA)

a i It is an inducement to workers to increase their output ii To retain highly competent staff into the organization iii To attract the best employees into the organization from the labor market iv T... View the full answer