Calculate the gross wages earned by each worker for the week 3 of April 2021

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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C: CASE STUDY

 

HSH Sdn Bhd produces handmade shoes for children based in Melaka. There are three workers who are employed to run the production. It is the company’s policy to set the normal working hours at 8 hours a day, operating 5 days in a week. Provided below is the information gathered from the weekly time sheet for Week 3 April 2021.

 

Employees

Weekly hours worked

Output produced (in pairs)

Rejected output (in pairs)

Monday

Tuesday

Wednesday

Thursday

Friday

   

 

Monica

10

11

10

9

8

215

4

 

Rachel

11

10

9

11

11

227

3

 

Joey

8

8

8

8

8

156

8

 

 

Monica and Rachel are skilled workers who are paid based on an hourly rate which is RM9.00 per hour. Skilled workers are entitled for overtime payment. The company decides an overtime rate of 1.5 times of the normal rate.

 

Meanwhile, Joey is a semi-skilled worker who is paid based on differential piecework scheme with a weekly minimum guaranteed wage of RM400. The differential piecework pay scheme is as follows:

 

Weekly Production Level

Rate of pay

1 – 50 units

RM2.00 per pair

51 – 100 units

RM2.50 per pair

101 – 150 units

RM3.00 per pair

151 and above

RM3.50 per pair

 

Required:

 

Calculate the gross wages earned by each worker for the week 3 of April 2021

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