Ten employees work as a group in Alltech Manufacturing Company. When the group's weekly production...
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Accounting
Ten employees work as a group in Alltech Manufacturing Company. When the group's weekly production exceeds the standard number of pieces per hour, each worker in the group is paid a bonus for the excess production in addition to wages at hourly rates. The amount of bonus is computed by first determining the percentage by which the group's production exceeds the standard; one-half of this percentage is then applied to a wage rate of $9 to determine an hourly bonus rate. The standard rate of production before a bonus can be earned is 200 pieces per hour for total hours worked.
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