Answer to Question #70860 in Accounting for lilly

Question

average wage rate per worker is $15 per day of 8 hours. suggestions were asked from employees and award equivalent to three months savings in labor cost is passed on to the worker whose suggestion is accepted.
what is he amount of award payable to the employee

Answer 1

If average wage rate per worker is $15 per day of 8 hours and award equivalent to three months savings in labor cost is passed on to the worker whose suggestion is accepted, then the amount of award payable to the employee is $15*8*20*3 = $7,200.