Question 6 [25marks] A factory manufactures three components: A, B and C. Last week the following was recorded: 14 40 44 Number of Labour Grade Employees Rate per hour Individual hours worked 1 16 4 40 II 28 3.2 42 III 2.8 IV 10 1.6 Output and standard times during the same week were follows: Components Output Standard minute(each) 454 30 B 950 54 580 66 The normal working week is 136,800 seconds. Overtime is paid at a premium of 50% of the normal hourly rate. A group incentive scheme is in operation. A bonus is paid for time saved (i.e. where actual production time is less than the standard time allowed). The time saved is expressed as a percentage of hours worked and is shared between the groups as a proportion of the hours worked by each grade at a rate of 75% of the normal hourly rate. A Required: a) What are the differences between time rate system and piece rate system? [6marks] b) What do you understand by Incentive scheme of wage payment? [6 marks] c) Calculate the total payroll showing the basic pay, overtime premium and bonus pay as separate totals for each grade of labour. [ 13marks]