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Mgt402 GDB

1) The document compares two wage plans, Halsey and Rowan. Under Halsey, gross wages are regular pay plus half the savings in pay, calculated as (hours worked x rate) + 0.5(hours saved x rate). Under Rowan, gross wages are regular pay plus a bonus for hours saved, calculated as (hours worked x rate) + (hours saved/allowed x hours taken x rate). 2) The effective rates are then calculated by dividing the gross wages by the total hours taken. For Halsey the effective rate is 156 and for Rowan it is 165. 3) In summary, the Rowan plan results in higher basic pay and a higher effective rate

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64 views2 pages

Mgt402 GDB

1) The document compares two wage plans, Halsey and Rowan. Under Halsey, gross wages are regular pay plus half the savings in pay, calculated as (hours worked x rate) + 0.5(hours saved x rate). Under Rowan, gross wages are regular pay plus a bonus for hours saved, calculated as (hours worked x rate) + (hours saved/allowed x hours taken x rate). 2) The effective rates are then calculated by dividing the gross wages by the total hours taken. For Halsey the effective rate is 156 and for Rowan it is 165. 3) In summary, the Rowan plan results in higher basic pay and a higher effective rate

Uploaded by

ahsan sajjad
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Mgt402 GDB

1)

According to Halsey premium plan, the basic pay or gross wages can be
calculated as.
Gross Wages = (Time worked x wage rate) + ½ (Time saved x wage rate)
= (15 x 120) + ½ (9 x 120)

= 2340

And According to Rowan Plan,


Gross Wages = (time worked x wage rate) + bonus
Bonus = (time saved / time allowed) x time taken x time rate

Bonus = (9/24) x 15 x 120 = 675

Now Gross Wage,


= (15 x 120) + 675
= 1800 + 675
= 2475

2)
Effective Rate according to Halsey Plan
= Gross Wages/ Time Taken
= 2340 / 15
= 156
Effective Rate according to Rowan Plan
Gross wages/ time taken
= 2475 / 15
= 165

3)
According to above calculations, clearly the basic pay and effective rate of Rowan
Plan is higher, which makes it more suitable for a worker to get.

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