Bonus Calculation for Time Saved in Production

Steps:

• Standard production rate: 200 units / 40 hours = 5 units per hour.
• Expected time for 250 units: 250 / 5 = 50 hours.
• Hours saved: 50 hours expected - 44 hours worked = 6 hours.
• Bonus payment: 6 hours saved × $10 per hour =$60.

Why D is correct:

• The bonus formula rewards efficiency by multiplying hours saved (expected time for output minus actual time) by $10, yielding$60 for 250 units in 44 hours.

Why the others are wrong:

• A: Assumes only 3 hours saved, underestimating expected time for 250 units.
• B: Treats overtime (44 - 40 hours) as saved time, ignoring production rate.
• C: Assumes 5 hours saved, possibly confusing units produced with hours.

Final answer: D