The following information relates to Gemstones Inclusive t.td. a manufacturing business that is considering the introduction...
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The following information relates to Gemstones Inclusive t.td. a manufacturing business that is considering the introduction of a piece-work incentive scheme in one of its departments, which has 4 employees. Current Payroll; Basic working hours are 38 a week. Over-time premium: Normal grade Stage 2 employee rate is N$ 30 per hour Normal grade Stage 1 employee pay rate is N$ 26 per hour Employee Andy Jack John Legend Stage 2 employee 25% of normal pay Stage 1 employee 20% of normal pay REQUIRD: Piecework Incentive Scheme Proposal Under the proposed incentive scheme, the standard time allowance would be 30 minutes per unit. The piecework rate would be based on Stage 2 employee labour rates, with an additional increment of 8% on the piecework rate. All employees would receive the same piecework rate. 3.1 Normal Hours Worked 49 46 50 38 3.2 Normal Pay Grade Stage 2 employee Stage 1 employee Stage 2 employee Stage 1 employee Jack pays 5% off his normal pay to a pension fund and twice the percentage of pension to a medical aid. Income tax is payable at 12%, while his social security contribution is at the mandatory limit as per the act. 107 Pension 3.3. Normal Units Produced 120 100 180 80 What is and incentive scheme and outline the purpose of an incentive scheme. Calculate the standard piecework rate per unit on the basis of the proposed incentive scheme. Calculate the net wage for Jack, assuming he is paid his hourly rate, related overtime and a bonus at the rate you calculated in 3.2 above. TOTAL MARKS FOR QUESTION 3 MARKS 2 3 10 15 mat D The following information relates to Gemstones Inclusive t.td. a manufacturing business that is considering the introduction of a piece-work incentive scheme in one of its departments, which has 4 employees. Current Payroll; Basic working hours are 38 a week. Over-time premium: Normal grade Stage 2 employee rate is N$ 30 per hour Normal grade Stage 1 employee pay rate is N$ 26 per hour Employee Andy Jack John Legend Stage 2 employee 25% of normal pay Stage 1 employee 20% of normal pay REQUIRD: Piecework Incentive Scheme Proposal Under the proposed incentive scheme, the standard time allowance would be 30 minutes per unit. The piecework rate would be based on Stage 2 employee labour rates, with an additional increment of 8% on the piecework rate. All employees would receive the same piecework rate. 3.1 Normal Hours Worked 49 46 50 38 3.2 Normal Pay Grade Stage 2 employee Stage 1 employee Stage 2 employee Stage 1 employee Jack pays 5% off his normal pay to a pension fund and twice the percentage of pension to a medical aid. Income tax is payable at 12%, while his social security contribution is at the mandatory limit as per the act. 107 Pension 3.3. Normal Units Produced 120 100 180 80 What is and incentive scheme and outline the purpose of an incentive scheme. Calculate the standard piecework rate per unit on the basis of the proposed incentive scheme. Calculate the net wage for Jack, assuming he is paid his hourly rate, related overtime and a bonus at the rate you calculated in 3.2 above. TOTAL MARKS FOR QUESTION 3 MARKS 2 3 10 15 mat D
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ANSWER 31 An incentive scheme is a system where employees ... View the full answer
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
Posted Date:
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