Mr. Smart is working by employing skilled workers. He is considering the introduction of some incentive scheme - either Halsey Scheme or Rowan Scheme of wage payment for increasing the Employee productivity to cope with the increased demand for the product by 10%. He feels that if the proposed incentive scheme could bring about an average 5% increase over the present earnings of the workers, it could act as sufficient incentive for them to produce more and he has accordingly given this assurance to the workers. As a result of the assurance, the increase in productivity has been observed as revealed by the following figures for the current month: RO 35 are the Hourly rate of wages (guaranteed), Average time for producing 1 piece by a worker at the previous performance is 20 seconds (This may be taken as time allowed), No. of working hours per day for each worker is 480 minutes and the worker worked for 360 minutes and his
Mr. Smart is working by employing skilled workers. He is considering the introduction of some incentive scheme - either Halsey Scheme or Rowan Scheme of wage payment for increasing the Employee productivity to cope with the increased demand for the product by 10%. He feels that if the proposed incentive scheme could bring about an average 5% increase over the present earnings of the workers, it could act as sufficient incentive for them to produce more and he has accordingly given this assurance to the workers. As a result of the assurance, the increase in productivity has been observed as revealed by the following figures for the current month: RO 35 are the Hourly rate of wages (guaranteed), Average time for producing 1 piece by a worker at the previous performance is 20 seconds (This may be taken as time allowed), No. of working hours per day for each worker is 480 minutes and the worker worked for 360 minutes and his
Chapter10: Short-term Decision Making
Section: Chapter Questions
Problem 1PA: Artisan Metalworks has a bottleneck in their production that occurs within the engraving department....
Related questions
Question
Mr. Smart is working by employing skilled workers. He is considering the introduction of some incentive scheme - either Halsey Scheme or Rowan Scheme of wage payment for increasing the Employee productivity to cope with the increased demand for the product by 10%. He feels that if the proposed incentive scheme could bring about an average 5% increase over the present earnings of the workers, it could act as sufficient incentive for them to produce more and he has accordingly given this assurance to the workers. As a result of the assurance, the increase in productivity has been observed as revealed by the following figures for the current month: RO 35 are the Hourly rate of wages (guaranteed), Average time for producing 1 piece by a worker at the previous performance is 20 seconds (This may be taken as time allowed), No. of working hours per day for each worker is 480 minutes and the worker worked for 360 minutes and his actual production during the day was 1,550 units. Calculate bonus earned by the work under Halsey Scheme plan.
a.
RO 210
b.
RO 245
c.
RO 254
d.
RO 35
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 1 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Business/Professional Ethics Directors/Executives…
Accounting
ISBN:
9781337485913
Author:
BROOKS
Publisher:
Cengage
Principles of Accounting Volume 2
Accounting
ISBN:
9781947172609
Author:
OpenStax
Publisher:
OpenStax College
Business/Professional Ethics Directors/Executives…
Accounting
ISBN:
9781337485913
Author:
BROOKS
Publisher:
Cengage