In a factory, both direct and indirect employees are entitled to production bonus in accordance with a group incentive scheme, the outline of which…

In a factory, both direct and indirect employees are entitled to production bonus in accordance with a group incentive scheme, the outline of which is as follows: (a) For any production in excess of the standard production which is fixed at 22,400 tonnes per month (of 28 days), a general incentive of 2,000 per tonne is to be paid in aggregate. The amount payable to each separate group of employees is determined based on an assumed percentage of such excess production being contributed by them which is as follows: Employee Group % Contribution in excess production over standard Direct Employee 60% Inspection Staff 20% Maintenance Staff 15% Supervisory Staff 5% (b) Moreover, if the excess production (without considering rejections) is more than 15% above the standard, the direct employees also get a special bonus @400 per tonne for all production in excess of 115% of standard production. (c) Inspection staff are penalised @2,500 per tonne for rejection by customers in excess of 3% of production. (d) Maintenance staffs are also penalised @2,500 per hour for machine breakdown. (e) Actual working days are 25 days in a month. (f) Actual production achieved during the month is 27,000 tonnes, of which the customers have rejected 1,000 tonnes. (g) Machine breakdown (in 25 days) : 75 hours On the basis of above Case Scenario, you are required to answer the following MCQs 1 to 5: