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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.
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