Question: Under a premium bonus scheme, workers received a guaranteed basic hourly minimum rate of pay plus a bonus of 50% of the time saved. No
Under a premium bonus scheme, workers received a guaranteed basic hourly minimum rate of pay plus a bonus of 50% of the time saved. No payment is paid beyond the time allowed but the bonus which is paid at the basic hourly rate is applicable to the accepted output only. No penalty is imposed on rejected output. The following details are available for the month of January 2022
| Worker | A | B | C |
| Time allowed per unit (hrs) | 1/6 | ||
| Units produced | 474 | 684 | 175 |
| Units rejected | 54 | 84 | 25 |
| Time taken (hrs) | 78 | 72 | 80 |
| Basic Pay per hour (Kshs) | 6 | 6 | 3 |
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Required:
From the above information calculate for each employee
a) Bonus hours and amount of bonus paid
b) Gross wages earned
c) Labour cost for each good unit sold
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