question 3.1 to 3.3

lab cbur QUESTION 3.16 MARKS, 27 MINUTES) The following information relates to Gemstore Inchivo Lata manufacturing businens that is considering the introduction of a piece work incentive scheme in one of its departments, which has 4 employees Current Payroll Basic worlong hours are 38 a week Over-time premium Stage 2 employee 25% of normal pay Stage 1 employee 20% of normal pay Normal grado Stage 2 employee rates NS 30 per hour Normal grade Stage 1 employee pay rate is NS 26 per hour Employee Normal Hours Worked Normal Pay Grade Normal Units Produced Andy 49 Stage 2 employee 120 Jack Stage 1 employee 100 John 50 Stage 2 employee 180 Legend 38 Stage 1 employee 80 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 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 Peulen REQUIRD: MARKS 3.1 2 3.2 3 What is and incentive scheme and outline the purpose of an incentive scheme Calculate the standard piecowork 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, 3.3 10 TOTAL MARKS FOR QUESTION 3 15 07 16-38 = 8 * 20 * 26 = 49.6 3% X 24438 Time Allowed a Time white = Time Saved & Rate t Wag x lab cbur QUESTION 3.16 MARKS, 27 MINUTES) The following information relates to Gemstore Inchivo Lata manufacturing businens that is considering the introduction of a piece work incentive scheme in one of its departments, which has 4 employees Current Payroll Basic worlong hours are 38 a week Over-time premium Stage 2 employee 25% of normal pay Stage 1 employee 20% of normal pay Normal grado Stage 2 employee rates NS 30 per hour Normal grade Stage 1 employee pay rate is NS 26 per hour Employee Normal Hours Worked Normal Pay Grade Normal Units Produced Andy 49 Stage 2 employee 120 Jack Stage 1 employee 100 John 50 Stage 2 employee 180 Legend 38 Stage 1 employee 80 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 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 Peulen REQUIRD: MARKS 3.1 2 3.2 3 What is and incentive scheme and outline the purpose of an incentive scheme Calculate the standard piecowork 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, 3.3 10 TOTAL MARKS FOR QUESTION 3 15 07 16-38 = 8 * 20 * 26 = 49.6 3% X 24438 Time Allowed a Time white = Time Saved & Rate t Wag x