A worker is paid the day-work rate if she earns less than 100% incentive premium. The standard for producing a certain part is 85 units per hour. The operator completes 140 good parts. The wage rate is $25 per hour.
A. If she produces 140 parts in 84 minutes:
a. What are her earned hours?
b. What would her pay for this time period be if the company’s incentive plan does not have a guaranteed wage?
c. What would her pay for this time period be if the company’s incentive plan does have a guaranteed wage?
B. The next time she produced these parts, it took her 105 minutes to produce 140 parts.
a. What are her earned hours?
b. What would her pay for this time period be if the company’s incentive plan does not have a guaranteed wage?
c. What would her pay for this time period be if the company’s incentive plan does have a guaranteed wage?