Problem:
Mat, Piah and Din are operative workers working in a factory producing metal brackets. The basic hourly rate is $6.00 and overtime rate is "time and a half". The factory policy is to pay their workers on weekly basis. The factory normal working hour is 40.
In addition, a group bonus scheme is in operation where bonus will be paid on time saved by the group. Time saved shared among group members in proportion of actual hours worked by each worker. Bonus rate is $3.00 per hour.
During week 4 of September, the three worked in a team and their output was 300 units of metal brackets. The standard time allowed for each unit of metal brackets is 30 minutes. Actual hours paid to Mat, Piah and Din were 42 hours, 44 hours and 40 hours respectively.
The normal hour worked during week 4 of September was 40 hours. Productive hours were 30 hours only, that is, there were 2 idle hours during that week due to machine breakdown.
Required:
a) Calculate the gross wages of each worker. Show clearly the basic pay, overtime pay and bonus pay.
b) Using answer in (a), analyse the total gross wages of the workers into direct wages and indirect wages.
c) List the possible cause for idle time.