Prestige Ornaments Ltd. (POL) manufactures ornaments for export trade . Jobs are allocated to two operators John and Alex with bonus paid for hours saved .

In a period of one week , John made 186 units and Alex made 210 units for which the time allowed of 30 standard minutes and 25 standard minutes per unit respectively was credited.

The basic wage rate was Sh.180 per hour for both employees. For everyhour saved, a bonus was paid at 20% of the basic wage rate . Hours worked in excess of basic week hours , were paid at the basic wage rate plus two thirds of the wage rate . John completed his job in 44 hours and Alex completed his jo in 39 hours. A basic week has 40 hours.

Required:

For each operator

The amount of bonus payable(4 Marks)

The total gross wage payable(3 Marks)

The wage cost per unit(3

Answer rating: 100% (QA)

To solve this problem we need to calculate the bonus payable the total gross wage payable and the wa... View the full answer