Labour Costs and Remuneration MethodsForums › FIA Forums › MA1 Management Information Forums › Labour Costs and Remuneration MethodsThis topic has 1 reply, 2 voices, and was last updated 6 years ago by Ken Garrett.Viewing 2 posts - 1 through 2 (of 2 total)AuthorPosts January 16, 2019 at 2:23 pm #502270 sashaParticipantTopics: 18Replies: 13☆Illustration Current scheme: $7/hour, 40 hour week. Overtime premium = time and a half. Usually 400 units are produced in 50 hoursProposed scheme: rates as above, but in addition the overtime premium is paid on any hours saved. Assume that 50 units are now made in 44 hoursPossible results: Hours saved = 50 – 44 = 6 Weekly wages = 44 x $7 +4 x $3.5 + 6 x $3.5 = 343 Cost per unit = 343/400 = 0.8575Why are we multiplying both the regular overtime and the premium overtime by $3.50?Should we not be working the regular overtime at the $3.50 and the Overtime premium by the $7.00 ? January 16, 2019 at 3:18 pm #502281 Ken GarrettKeymasterTopics: 10Replies: 10575☆☆☆☆☆Sorry, it should say ‘Overtime rate = time and a half’ not ‘overtime premium’.The notes are being updated.Thanks for pointing it out.AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In