The existing incentive system for AlI Amir SAOG is as under: Normal working week: 5 days...

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The existing incentive system for AlI Amir SAOG is as under: Normal working week: 5 days of 8 hours each plus 3 late shifts of 3 hours each. Rate of Payment: Day work: OMR 1.6 per hour Late shift: OMR.250 per hour Average output per operator for 49 hours week, i.e., including 3 late shifts 120 units In order to increase the output and eliminate overtime, it was decided to switch on to a system of payment by results. Following information is obtained. Time rate as usual: OMR 1.600 Basic time allowed for 15 units: 5 hours Piece-work rate: Add 20% to basic piece rate Premium bonus: Add 50% to time. Required: Prepare a statement showing hours worked, weekly earnings, number of articles produced and labour cost per unit for one operator under the following wage systems; (a) Existing Time rate (b) Straight Piece Rate (c) Rowan System (d) Halsey Premium Plan Assume that 135 units are produced in a 40-hour week under straight piece work, Rowan premium system and Halsey Premium system above and the operator earns half the time saved Under Halsey Premium system. The existing incentive system for AlI Amir SAOG is as under: Normal working week: 5 days of 8 hours each plus 3 late shifts of 3 hours each. Rate of Payment: Day work: OMR 1.6 per hour Late shift: OMR.250 per hour Average output per operator for 49 hours week, i.e., including 3 late shifts 120 units In order to increase the output and eliminate overtime, it was decided to switch on to a system of payment by results. Following information is obtained. Time rate as usual: OMR 1.600 Basic time allowed for 15 units: 5 hours Piece-work rate: Add 20% to basic piece rate Premium bonus: Add 50% to time. Required: Prepare a statement showing hours worked, weekly earnings, number of articles produced and labour cost per unit for one operator under the following wage systems; (a) Existing Time rate (b) Straight Piece Rate (c) Rowan System (d) Halsey Premium Plan Assume that 135 units are produced in a 40-hour week under straight piece work, Rowan premium system and Halsey Premium system above and the operator earns half the time saved Under Halsey Premium system.

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Statement of labor costs ayment System Hours Weekly worked earnings articles Number of La... View the full answer