Chapter 4: Labour

Question (May 2016)

The following data relates to the third week of march 2016 for 3 employees involved the
production of product K:

Employee Actual hours Rate per Hour Unit produces

worked
Farid 42 RM5.00 93
Saiful 35 Rm5.50 88
Azfar 49 RM4.50 108

Additional information:

1. Normal working hours id 8 hours per day and the employees work from Monday to
Friday. Overtime rate is paid at a time and half and such overtime being necessary
to meet general requirement of production.

2. Standard time to produce a product for each worker is 30 minutes per unit.

3. A premium bonus scheme is in operation where the employees receive a bonus at

60% of time saved.

Required:

Calculate the gross wages earned by each worker by showing clearly:

a) Basic wages

b) Overtime (if any)

c) Bonus (if any)

d) Total gross wages

Question (Nov 2016)

Part A

Based on the data shown below, you are required to calculate the remuneration for each
employee, as determined by each of the following method:

a) Time Rate

b) Piecework Rate

c) Individual bonus scheme, where the employee received a bonus in propotion of time
saved to time allowed.

Muhammad Arief Fahmy

Unit produced 250 200 220
Time allowed in 10 15 12
minutes/unit
Time taken in hours 50 40 36
Rate per hour RM3.5 RM2.10 RM1.2
Rate per unit RM0.45 RM0.50 RM0.24

Part B

The following information is available on Farihin Manufacturing Bhd for the month of
September 2016:

Number of people employed at the beginning of the period 58

Additional to workforce during the period 9

Number of employees who left during the period 7

Required

a) Calculate the labour turnover rate

Question (May 2017)

Station house Sdn Bhd is a company producing luxury household products for local market.
the company hires one skilled worker (Ahmad) and semi-skilled worker (Bakar) to produce
its products. The normal working hours for the workers is 40 hours per week. For the first
week of January 2017, the following data was available:

Worker Grade Hours Worked Rate per hour

Ahmad skilled 45 RM4
Bakar Semi-skilled 50 RM3

The company also set the standard time to produce one unit of each product.

The information regarding the products for the first week of January 2017 is shown below:

Unit Produced Grade Standard time /unit

100 units Skilled 35 minutes
100 units Semi-Skilled 40 minutes

Additional information:

1. Overtime premium is paid at 40% of the normal working hours.

2. Bonus paid on the individual basis. the bonus is calculated based on time saved at
premium of 50%.

Required:

Calculate the total gross wages for Ahmad and Bakar for the first week of January 2017 by
showing clearly the basic pay, overtime, bonus and total gross wages.
(15 Marks)
Question (Oct 2015)

Puncak Alam manufacturing produces metal steel brackets for both the local and overseas
markets. in order to maintain the quality of products, the company categorized the
employees according to skilled, semi-skilled and non-skilled workers.

Below is the basic of wage payment according to their categories:

Employee Categories Basic of Wages Rate

Skilled workers
Semi-skilled worker
Differential piece rate
Piece rate with guaranteed
minimum
UP to 100 units = RM3.00
101 – 200 units = Rm3.50
201 – 300 units = RM4.00
Above 300 units = RM4.50
RM3.80 per unit
Guaranteed minimum wage
= RM850.00

Non-Skilled worker Hourly rate RM13.00 per hour

The data for three employees for the first week of June 2014 are as follows:

Categories Employees Hours worked Unit Produced

Skilled Fadzil 45 250
Semi-Skilled Irwan 40 200
Non-Skilled Siti 56 300

Time allowed to produce per unit of product is 12 minutes for skilled worker and 15
minutes for semi-skilled worker. No time allowed is set for non-skilled worker. the normal
working hour is 45 hours per week. since the skilled workers are paid based on output,
only the non-skilled worker is eligible to claim overtime. the overtime rate is one and a half
for the first hour in excess of 45 hours and double in excess of 50 hours.

as part of the motivation to encourage employees to achieve zero product defect, the
employees are paid a bonus based on 30% of time saved at a bonus rate of RM8.00 per
hour.

Required:

Calculate the gross wages for each of the employees showing the calculation for:

a) Basic wages

b) Overtime

c) Bonus