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labour costs and remuneration methods

Forums › FIA Forums › General FIA Forums › labour costs and remuneration methods

  • This topic has 1 reply, 2 voices, and was last updated 10 years ago by Sir Insanity.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • August 7, 2014 at 5:24 am #186792
    rajive
    Participant
    • Topics: 3
    • Replies: 3
    • ☆

    Employees are paid $7/hour for a standard 40 hour week. Overtime is paid at time and one half.
    The employee is expected to make at least 120 units in a week, and to encourage productivity, each unit in excess of 120 will generate an additional payment of $5 less any overtime premium that would relate to the time the additional unit would normally take.
    What is an employee’s wages in a week in which 135 units are made and the employee works 44 hours?

    Example 1
    Note: each unit is expected to take 40 x 60/120 = 20 minutes
    $ Basic wages for 44 hours = 44 x $7 = 308.00
    Overtime premium 4 x $7 x ½ = 14.00
    Extra units 15 x $5 75.00
    Overtime premium that could be associated with the extra units
    15 x 1/3 x $7 x 1/2 -17.50 379.50

    I still don’t understand where the 1/3 came from. What was the calculation made that made them included 1/3?

    December 17, 2014 at 3:21 pm #220994
    Sir Insanity
    Participant
    • Topics: 28
    • Replies: 44
    • ☆☆

    Hey,
    That’s simple.
    You multiply 15 (etc) with no. of hours per unit ie 20/60 = 1/3 hrs.
    Okay?

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