labour

TUTORIAL WEEK: LABOUR (BONUS INCORPORATED) QUESTION 1 Kenchana Sdn Bhd produces two types of products, Alpha and Beta. For the first week of March 2017, the following data were available: Employee Danial Damak Danish Rate per hour (RM) 10 8 45 55 52 Actual hours worked (hours) Product: Alpha (kilogramme) Product: Beta (kilogramme) 200 140 160 80 110 120 Currently the company paid the workers based on hourly basis. The company operates at 40 hours per week. Overtime is a normal activity in this company and the premium on overtime will be paid at 20% of normal hourly rate for the first five hours and 35% for the excess hours. Required: a. i. Calculate the total gross wages paid for each employee for the first week of March 2017 using the current payment scheme. ii. If the company changed the current payment scheme from hourly rate to output scheme, determine the total wages for the workers if the rate per kilogramme for Alpha and Beta is RM1.20 and RM2.00 respectively. (8 marks) b. In addition to the current payment scheme, the employees are also entitled for a bonus of RM5.00 per time saved. The standard time to produce both products is 5 kilogrammes per hour. Determine the bonus to be paid to each employee. (8 marks) 8