APEL’s costing department is in the process of determining salaries and wages for December 2022.   The following information is available for four workers: Activity Kalombo Sitali Chigangu Muleya Actual units produced 350 units 600 Units 500 Units 450 Actual hours worked 60 Hours 45 Hours 48 Hours 55 hours Wage rate per hour K10 K12 K15 K11.5 Expected work hours 50 Hours 50 Hours 50 Hours 50 Over time paid @ Time and half Time and half Time and half Time and half The standard time per unit for each worker is 12 minutes and the bonus is paid at 60% of time saved.            Required: Calculate the total pay for each of the employees clearly showing the bonus pay, overtime premium and basic wage figures.  Explain the advantages and disadvantages of group bonus schemes.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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APEL’s costing department is in the process of determining salaries and wages for December 2022.   The following information is available for four workers:

Activity

Kalombo

Sitali

Chigangu

Muleya

Actual units produced

350 units

600 Units

500 Units

450

Actual hours worked

60 Hours

45 Hours

48 Hours

55 hours

Wage rate per hour

K10

K12

K15

K11.5

Expected work hours

50 Hours

50 Hours

50 Hours

50

Over time paid @

Time and half

Time and half

Time and half

Time and half

The standard time per unit for each worker is 12 minutes and the bonus is paid at 60% of time saved.           

Required:

  • Calculate the total pay for each of the employees clearly showing the bonus pay, overtime premium and basic wage figures. 
  • Explain the advantages and disadvantages of group bonus schemes. 
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