The following data relate to work in the finishing department of a certain factory.
Normal working day
7 hours
Basic rate of pay per hour
$5
Standard time allowed to produce 1 unit
4 minutes
Premium bonus payable at the basic rate
60% of time saved
On a particular day one employee finishes 180 units.
What will his gross pay for the day be?
$ ________
The correct answer is: $50
Standard time for 180 units (× 4/60)
Actual time taken
Time saved
Basic pay 7 hours × $5
Bonus: 60% × 5 hours saved × $5 per hour
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