Asetsenapa Ltd. presents the following information which relates to a week's work of three of its employees. Employee Cynthia Augustine Adamu Work issued (units) 400 600 120 Time Allowed (hrs. per unit) 0.2 0.1 0.4 Output Rejected (units) 60 90 40 The basic working week is 40 hours; the first 6 hours overtime are paid time plus 12⁄ and the next 10 hours at time plus 34⁄. Hours worked by Cynthia, Augustine and Adamu were 52, 45 and 40 respectively. Adamu spent 8 hours on indirect work. These hours being included in the 40 hours worked by him. The three employees' basic hourly rates of pay were as follows: Cynthia GH¢30, Augustine GH¢40 and Adamu GH¢25. Bonus is paid at 12⁄ of the basic rate for all time saved. The high rate of rejection was considered abnormal due to faulty materials and it was agreed to credit all output for bonus purposes. Required: You are required to present in a tabular form for each employee: (1) Direct wages cost per unit accepted when overtime is worked Regularly throughout the year as company policy due to labour shortages (2) Direct wages cost per unit accepted when overtime is workedSpecifically at the customer's request to expedite delivery.
Asetsenapa Ltd. presents the following information which relates to a week's work of three of its employees.
Employee Cynthia Augustine Adamu
Work issued (units) 400 600 120
Time Allowed (hrs. per unit) 0.2 0.1 0.4
Output Rejected (units) 60 90 40
The basic working week is 40 hours; the first 6 hours overtime are paid time plus 12⁄ and the next 10 hours at time plus 34⁄. Hours worked by Cynthia, Augustine and Adamu were 52, 45 and 40 respectively. Adamu spent 8 hours on indirect work. These hours being included in the 40 hours worked by him. The three employees' basic hourly rates of pay were as follows: Cynthia GH¢30, Augustine GH¢40 and Adamu GH¢25.
Bonus is paid at 12⁄ of the basic rate for all time saved. The high rate of rejection was considered abnormal due to faulty materials and it was agreed to credit all output for bonus purposes.
Required:
You are required to present in a tabular form for each employee:
(1) Direct wages cost per unit accepted when overtime is worked Regularly throughout the year as company policy due to labour shortages
(2) Direct wages cost per unit accepted when overtime is workedSpecifically at the customer's request to expedite delivery.
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