2.24 2.25 2.26 All questions need to be answered 2.23 A worker is paid the day-w

Question

2.24

2.25

2.26

All questions need to be answered

2.23 A worker is paid the day-work rate if she earns less than 100% incentive premium. The standard is 75 units per hour, and the operator completes 140 good parts in 1.4 hours. The rate is $25 per hour. (a) Find the piece rate. (b) What are the earnings and labor efficiency? 2.24 (a) A sheet metal operator is told that her standard is 1.875 hours per 100 units. If her wage is $16 per hour and she makes 800 units in 12 hours, what are her earnings? (b) If the actual time is 16 hours, what is her guaranteed pay and efficiency for the 100% plan? 2.25 Efficiency of 125% for an operation is calculated.The standard is 10 hours per unit and the wage is $23.50 per hour. What is the expected cost for 210 units? machines and plastic products A and B are produced. Ma- chines A and B have a production rate of 400 and 250 strokes per hour. Molds A and B produce three or four buttons per stroke respectively. The operator wage is $11 per hour Dejoint these labor costs when allocation is based on (a) number of machines, (b) product fnroducing two narts which are labeled 1 and 2.The 2.26 A molding operator tends two output of machines A and B, and (c) marketing believes that A to B value is 5:4.

Explanation / Answer

2.23

a) 140 / 1.4 = 100 units/hr

$25 / 75 units = $0.33 / unit

0.33 x 100 = $33 / hr

b) Cdl = HaRh + Rh(HsNp – Ha)

(1.4 x 25) + 25[(1/75)(140) – 1.4] = $46.67

E = Np(Hs/Ha)x100

140(0.013/1.4)100 = 133%

2.24

a) 1.875 x (800/100) = 15 standard hours

15 x 16 = $240 earnings for the 12 hours, or $20 / hour

b) Ha = 16, Rh = $16, Np = 800, Hs = 1.875/100 = 0.01875 hr / piece

Cdl = (16 x 16) + 16 x [(0.01875 x 800) – 16] = $240

240 / 16 = $15 / hour

But, $16 / hour is guaranteed, so Cdl = 16 x 16 = $256

Efficiency: 800 x (0.01875 / 16) x 100 = 93.75%

2.25

Need to find Ha:

Ha = (100NpHs) / E = (100 x 210 x 10) / 125 = 1680 hours

Cdl = (1680)(23.50) + (23.50) x [(10x210) – 1680] = $49,350

2.26

a) $11 / hour for 2 machines = $5.50 / hour / machine

A: 400 x 300 = 1200 buttons / hour 5.50 / 1200 = 0.46¢ / button

B: 250 x 4 = 1000 buttons / hour 5.50 / 1000 = 0.55¢ / button

b) Combined output = 1200 + 1000 = 2200 / hour

A: 1200 / 2200 = 54.5% B: 1000 / 2200 = 45.5%

11 x 0.545 = $6.00 11 x 0.455 = $5.00

6 / 1200 = 0.5¢ / button 5 / 1000 = 0.5¢ / button

c) A: 11 x 5/9 = $6.11 B: 11 x 4/9 = $4.89

6.11 / 1200 = 0.51¢ / button 4.89 / 1000 = 0.49¢ / button

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