[victornweke]

Chadi Aliyu operates a group incentive scheme in his Wunti gate plant in Bauchi, standard output for the plant is 5,000 units per week. If production is less than or equal to standard output each worker receives a guaranteed hourly minímum. If production exceed standard output, the hourly rate of each worker is increases by 20% for every extra 150 units. Results for the first week of 2024 are as follows:
Name Guaranteed minimum hourly pay Units produced Hours worked
Azare N8 2,100 40
Gombe N7 1,900 40
Biu N6 1,705 40

The standard working hours in a week is 40 hours.
Required
i. Calculate the Labour Cost per unit for the plant at Standard Output for the week (41/2 Marks)
ii. Compute the Gross Earning in the plant for the week (3 Marks)
iii. By Comparing the Actual Labour Cost per unit for the week with the Standard Labour Cost per unit in the plant, state whether or not the incentive scheme operated by Aliyu is effective.(2 Marks)

b. B whose hourly rate of pay is N100.00 was assigned the following jobs which he completed during a week:
Job No. Time Allowed (Hours) Time Taken (Hours)
21 34 18
61 40 25

(a) You are required to calculate under rowan premium scheme:
i. B’remuneration for the week
ii. B’s effective hourly rate for that week

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