Some Types of Individual Wage Incentive Plans Standard-Hour Wage Plan cont.
Using the formulae on text p. 331, the pay is:
Pay = (Base hourly wage x hours worked x hourly production rate) ¸ (hourly production rate at which bonus begins)
= ($10 per hour x 40 hours x 10 units per hour) ¸ (8 units per hour)
= $500 (which for 40 hours corresponds to an hourly wage of $12.50 per hour)