Incentive Wage Plans. Different departments of the Winkle Chocolate Company use different incentive

Incentive Wage Plans. Different departments of the Winkle Chocolate Company use different incentive wage plans. For instance, Irving Dunn of the Mixing Department is covered by a 100 percent bonus plan, while his wife Peggy of the Wrapping Department participates in a straight piecework arrange- ment. Both employees receive a guaranteed base rate of $3.50 per hour.

Irving produced 15 units per hour every day of the first week in May. Standard production under his plan is only 12 units.

Peggy, whose straight piecework plan has designated 18 units per hour as

the standard, produced 20 units per hour Monday through Thursday and 21 units per hour on Friday of the same week.

Required: The weekly gross earnings of both employees, assuming that both work 5 days a week and 8 hours each day and that the $3.50 base rate forms the basis applicable to both incentive wage plans.

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