Total Wages Calculation Under Different Payment Plans

The given information is as follows:
- Total production time = 40 hours
- Hourly rate = $10
- Total production pieces = 200
- Piece rate = $0.50 per piece
- Halsey plan = 50% bonus for time saved
- Rowan plan = 120% bonus for time saved

1) Time Rate Basis
Under time rate basis, the wages are calculated by multiplying the total production time by the hourly rate. Therefore, the total wages under time rate basis would be:
Total wages = 40 hours x $10 = $400

2) Piece Rate Basis
Under piece rate basis, the wages are calculated by multiplying the total production pieces by the piece rate. Therefore, the total wages under piece rate basis would be:
Total wages = 200 pieces x $0.50 per piece = $100

3) Halsey Plan
Under Halsey plan, the wages are calculated by adding the regular wages to the bonus amount, which is half of the time saved multiplied by the hourly rate. Therefore, the total wages under Halsey plan would be:
Regular wages = 40 hours x $10 = $400
Time saved = 40 hours - (200 pieces x 0.2 hours per piece) = 0 hours
Bonus amount = 0.5 x 0 x $10 = $0
Total wages = Regular wages + Bonus amount = $400 + $0 = $400

4) Rowan Plan
Under Rowan plan, the wages are calculated by adding the regular wages to the bonus amount, which is the percentage of time saved multiplied by the regular wages. Therefore, the total wages under Rowan plan would be:
Regular wages = 40 hours x $10 = $400
Time saved = 40 hours - (200 pieces x 0.2 hours per piece) = 0 hours
Percentage of time saved = 0%
Bonus amount = 120% x 0% x $400 = $0
Total wages = Regular wages + Bonus amount = $400 + $0 = $400

Explanation of Different Payment Plans

1) Time Rate Basis
Under time rate basis, the wages are fixed per hour, regardless of the amount of work done. This payment plan is suitable for jobs that require a certain level of skill or knowledge, and where the output is difficult to measure.

2) Piece Rate Basis
Under piece rate basis, the wages are based on the amount of work done, i.e., the number of pieces produced. This payment plan is suitable for jobs that involve repetitive tasks and where the output can be easily measured.

3) Halsey Plan
Under Halsey plan, the worker receives a bonus for time saved, in addition to their regular wages. The bonus amount is half of the time saved multiplied by the hourly rate. This payment plan is suitable for jobs where the output can be improved by reducing the time taken for the task.

4) Rowan Plan
Under Rowan plan, the worker also receives a bonus for time saved, but the bonus amount is a percentage of the regular wages, rather than a fixed amount. The percentage is determined by the formula: (bonus percentage) x (time saved / total production time). This payment plan is suitable for jobs where the output can be improved by reducing the time taken for the task, but where the