Kabwe Ltd assembles a product (Tota) from various components using three operative staff (Lusaka, Choma, Kalabo), each working a 40 hour week. The company pays overtime at time and half and a bonus of 75% of time saved at the normal hourly rate. The data below relates to Kabwe Ltd operation in week 10. Operative staff Lusaka Choma Kalabo Total output units 530 600 490 Total hours worked 60 hours 45 hours 48 hours Wage rate per hour K18 K20 K15 The standard time allowed per unit is 6 minutes irrespective of the operative staff. Required: a) Calculate the total pay for each of the employees in week 10 showing clearly the bonus, overtime premium and basic wage figures. b) Kabwe Ltd management wishes to adopt a piece work scheme to increase the weekly output. State two advantages and two disadvantages of implementing a piece work scheme to Kabwe Ltd. c) Contrast Activity Based Costing (ABC) from Traditional overhead absorption method
Kabwe Ltd assembles a product (Tota) from various components using three operative staff (Lusaka, Choma, Kalabo), each working a 40 hour week. The company pays overtime at time and half and a bonus of 75% of time saved at the normal hourly rate.
The data below relates to Kabwe Ltd operation in week 10.
Operative staff Lusaka Choma Kalabo
Total output units 530 600 490
Total hours worked 60 hours 45 hours 48 hours
Wage rate per hour K18 K20 K15
The standard time allowed per unit is 6 minutes irrespective of the operative staff.
Required:
a) Calculate the total pay for each of the employees in week 10 showing clearly the bonus, overtime premium and basic wage figures.
b) Kabwe Ltd management wishes to adopt a piece work scheme to increase the weekly output.
State two advantages and two disadvantages of implementing a piece work scheme to Kabwe Ltd.
c) Contrast Activity Based Costing (ABC) from Traditional
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