Ushindi Ltd manufactures ornaments for export trade. Jobs are allocated to two operators. Mbotela and Juma with bonus paid for hours saved. In the month of February 2009, Mbotela made 186 units and Juma made 210 units for which the time allowed of 30 standard minutes and 25 standard minutes per unit respectively was credited. The basic wage was ksh. 18 per hour for both employees. For every hour saved a bonus was paid at 20% of the basic wage rate. Hours worked in excess were paid at the basic wage rate plus two thirds. Mbotela completed his job in 44 hours and Juma completed his job in 39 hours. A basic working week has 40 hours. Required: For each operator, calculate: The amount of bonus payable. The total gross wage payable. The wages cost per unit.
Ushindi Ltd manufactures ornaments for export trade. Jobs are allocated to two operators. Mbotela and Juma with bonus paid for hours saved.
In the month of February 2009, Mbotela made 186 units and Juma made 210 units for which the time allowed of 30 standard minutes and 25 standard minutes per unit respectively was credited.
The basic wage was ksh. 18 per hour for both employees. For every hour saved a bonus was paid at 20% of the basic wage rate. Hours worked in excess were paid at the basic wage rate plus two thirds.
Mbotela completed his job in 44 hours and Juma completed his job in 39 hours.
A basic working week has 40 hours.
Required:
For each operator, calculate:
- The amount of bonus payable.
- The total gross wage payable.
- The wages cost per unit.
Trending now
This is a popular solution!
Step by step
Solved in 2 steps with 2 images
Ushindi Ltd manufactures ornaments for export trade. Jobs are allocated to two operators. Mbotela and Juma with bonus paid for hours saved. In the month of February 2009, Mbotela made 186 units and Juma made 210 units for which the time allowed of 30 standard minutes and 25 standard minutes per unit respectively was credited. The basic wage was ksh. 18 per hour for both employees. For every hour saved a bonus was paid at 20% of the basic wage rate. Hours worked in excess were paid at the basic wage rate plus two thirds. Mbotela completed his job in 44 hours and Juma completed his job in 39 hours. A basic working week has 40 hours. Required: For each operator, calculate: i. The amount of bonus payable. ii. The total gross wage payable. iii. The wages cost per unit.