Nsubunga, Isabirye and Abaho have been employees of Mukwano manufacturing company ltd. It has been the company?s policy to remunerate its employees on a time basis. The production manager is however considering introducing an alternative strategy of remuneration to enable the achievement of the company objectives. The following information relates to the month of June 2018


Time worked

Rate pay per hour ($)

Units of output produced


2,640 minutes




2,400 minutes




3,000 minutes




The time allowed for each unit of output is 8 standard minutes.


Determine the amount of wages payable to each employee if the company maintains the existing scheme

The production manager proposed a premium bonus scheme where an employee is remunerated on an hourly basis plus bonus computed at a rate of 80% of the time saved. Determine the earnings of each employee.


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I would like to inform you that Mr. Aftab Ahmed worked in our organization from January 2008 to June 30, 2018. He received 2.6 to 9.5 out of 10 points and his overall performance can be rated as good.

The report is presented to you by a member of PEL's Human Resources Department on behalf of the PEL President.
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