CAF-5 · Chapter 4 · Question 5 of 10
A factory standard assumes a worker will produce 20 units per hour. The standard wage rate is Rs. 30 per hour. During an 8-hour shift, a worker produces 180 units. If the company operates a premium bonus plan where the worker receives 50% of the time saved, what are the total earnings of the worker for that day?
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) Rs. 255
Explanation
Standard units for 8 hours = 8 × 20 = 160 units. Actual units produced = 180 units. Extra units = 180 - 160 = 20 units. Time saved = 20 units / 20 units per hour = 1 hour saved. Basic Pay = 8 hours × Rs. 30 = Rs. 240. Bonus = 50% × 1 hour saved × Rs. 30 = Rs. 15. Total Earnings = 240 + 15 = Rs. 255.
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