Merrick plan

Std sale per hr 12 units

basic comp. rate per unit 6 rupees

X sold 64 units in a day

Y 84
Z 100

<83% peformance basic piece rate

From 83% to 100% performaneq110% of basic piece rate
>100% 120% of basic piece rate

X Y Z
384 554.4 720

Gantt plan
Std output per day 500 units
Guaranteed payment 270 Rs per day
Per unit 0.54 Rs
A produces 450 units
B 650 units
C 500 units

A 270 Rs
C 324 Rs
B 421.2 Rs

Gain sharing plans: Scanlon plan:

2007 base year
SVOP 4000000 Rs
Total Wage Bill 500000 Rs

Allowed wage 0.125 12.50%

2012 operating year

SVOP 8500000 Rs
Actual Wage bill 960000 Rs
Calculate available amount to be distributed as bonus

Allowed wage bill 1062500 Rs

Savings 102500 Rs

Extra work:
Split 20-80
20% as bonus for employees 20500
80% taken by company 82000
(This can be reversed too, or values can also be changed)
(bonus 65% of 20500to mktg people
20% to finance people
20% to HR people
10% for IT
10% for admin)

2007 base year

SVOP 8700000 Rs
Total Wage Bill 690000 Rs

Allowed wage 0.079310344827586 7.93%

2012 operating year

SVOP 5500000 Rs
Actual Wage bill 560000 Rs

Calculate available amount to be distributed as bonus

Allowed wage bill 436206.896551724 Rs

Savings -123793.103448276 Rs

6/30/2020
Company abc in 2015
Total Wage bill 4500000
SVOP 12000000
Ratio of total wage bill/SVOP 0.375 37.50%
2019,
Wage bill 6900000
SVOP 19900000
Allowed wage bill 7462500
Savings 562500

Calculate the available amount for bonus.

The company has decide to give 50% of the bonus amount to the marketing department, which has 25 employees.
If equally distributed, each marketing employee will get how much bonus?

50% of bonus 281250

divided by 25 emp 11250

Rucker plan
Spending 40 Rs
Product 100 Rs
Production value added 60
ATE 50%
Wage bill 35000
Actual production vale 250000

Saving?
Total amount of bonus to be distributed among emp?

Rucker plan
Spending 142500 Rs
Product 500000 Rs
Production value added 357500
Attributable to the emp 45%
Wage bill 135000
Actual production value 6250000

Saving?
Total amount of bonus to be distributed among emp?
96 per day
which has 25 employees.

0.4
1
0.6
0.5
PR 3.33333333
Exp prod val 116666.667
Savings 133333.333
Bonus 66666.6667
75% of bonus 50000

0.285
1
0.715
0.45
PR 3.10800311
Exp prod val 419580.42
Savings 5830419.58
Bonus 2623688.81
75% of bonus 1967766.61