(a) The following information relate to 4 employees A,B,C and D. EMPLOYEES. A B C D Actual hours worked 38 36 40 34 Hourly rate of pay K4500 K4320 K4,000 K6,000 Output in units XN 42 120 120 Y Z 72 92 76 270 50 Standard time allowed per unit x 6 minutes y - 9minutes z- 15 minutes Each minute earned is valued at K80 for piece work calculation. You are required to calculate for each employee his earnings using 1) Guaranteed hourly rates only addition to hourly pay. (4 Marks) 2) Piece work, but with earnings guaranteed at 75% of basic pay.(6 Marks) 3) Premium bonus in which the employee received two-thirds of time saved in (4 Marks) (b) B Limited had a staff of 1800 at the beginning of 2012 and owing to series of redundancies caused by the recession, 1200 at the end of the year. Voluntary redundancy was taken by 1500 staff, 300 more than the company anticipated. These excess redundancies were immediately replaced by new employees. (ii) Calculate labour turnover (2 Mark) In relation to labour turnover, explain the following costs giving two examples (a) Replacement costs (b) Learning Costs (c) Leaving costs (3 Marks) (3Marks) (3 Marks).. (Total 25 Marks)
(a) The following information relate to 4 employees A,B,C and D. EMPLOYEES. A B C D Actual hours worked 38 36 40 34 Hourly rate of pay K4500 K4320 K4,000 K6,000 Output in units XN 42 120 120 Y Z 72 92 76 270 50 Standard time allowed per unit x 6 minutes y - 9minutes z- 15 minutes Each minute earned is valued at K80 for piece work calculation. You are required to calculate for each employee his earnings using 1) Guaranteed hourly rates only addition to hourly pay. (4 Marks) 2) Piece work, but with earnings guaranteed at 75% of basic pay.(6 Marks) 3) Premium bonus in which the employee received two-thirds of time saved in (4 Marks) (b) B Limited had a staff of 1800 at the beginning of 2012 and owing to series of redundancies caused by the recession, 1200 at the end of the year. Voluntary redundancy was taken by 1500 staff, 300 more than the company anticipated. These excess redundancies were immediately replaced by new employees. (ii) Calculate labour turnover (2 Mark) In relation to labour turnover, explain the following costs giving two examples (a) Replacement costs (b) Learning Costs (c) Leaving costs (3 Marks) (3Marks) (3 Marks).. (Total 25 Marks)
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:(a) The following information relate to 4 employees A,B,C and D.
EMPLOYEES.
A
B
C
D
Actual hours worked
38
36
40
34
Hourly rate of pay
K4500
K4320
K4,000
K6,000
Output in units
XN
42
120
120
Y
Z
72
92
76
270
50
Standard time allowed per unit
x 6 minutes
y - 9minutes z- 15 minutes
Each minute earned is valued at K80 for piece work calculation.
You are required to calculate for each employee his earnings using
1) Guaranteed hourly rates only
addition to hourly pay.
(4 Marks)
2) Piece work, but with earnings guaranteed at 75% of basic pay.(6 Marks)
3) Premium bonus in which the employee received two-thirds of time saved in
(4 Marks)
(b) B Limited had a staff of 1800 at the beginning of 2012 and owing to series of
redundancies caused by the recession, 1200 at the end of the year. Voluntary
redundancy was taken by 1500 staff, 300 more than the company anticipated. These
excess redundancies were immediately replaced by new employees.
(ii)
Calculate labour turnover
(2 Mark)
In relation to labour turnover, explain the following costs giving two
examples
(a) Replacement costs
(b) Learning Costs
(c) Leaving costs
(3 Marks)
(3Marks)
(3 Marks)..
(Total 25 Marks)
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