Answer:
<h2>Andalusia Ltd</h2>
<h3>Wages based on:</h3>
a. Time rate = RM 2.80 x 40 hours = RM 112
b. Piece Rate = RM 0.70 x 250 units = RM 175
c. Halsey premium bonus scheme:
Pay per hour = RM 2.80,
Therefore Wages = Normal Wages + Bonus
= (RM 2.80 x 40) + 50% (RM 2.80 x 22.5)
= RM 112 + 31.5 = RM 143.50
Explanation:
a) Time for each product unit = 12
Piece rate = RM 2.80/60 x 15 = RM 0.70 per unit
b) Under Halsey Premium Bonus Scheme:
Hours used in production = 40 hours
Hours for producing 250 units = 62.5 hours
Gain in hours = 22.5 hours (62.5 - 40)
c) Time rates are wages based on the amount of time spent at work. The usual form of time rate is the weekly wage or monthly salary. Usually the time rate is fixed in relation to a standard working week (e.g. 40 hours per week).
d) Wages based on piece rate (also known as piecework) is a pay based on number of units or pieces created rather than the number of hours worked. In other words, the more “pieces” an employee produces, the more the employee is paid.
e) Under Halsey Plan, the standard time for the completion of a job is fixed and the rate per hour is then determined. The usual bonus share paid to the worker is 50% of the time saved multiplied by the rate per hour (time-rate).
