LPC Bank operates a call centre to deal with customer queries. The following information is available:120 call centre operators work in teams. Each team has a supervisor. There are eight supervisors.Call centre operators are paid RM8 per hour and supervisors are paid RM15 per hour.All staff work a 36-hour week.Bonuses are paid to call centre operators if they achieve efficiency and quality targets. For example, if 100% efficiency and quality are achieved the call centre operator receives a bonus of 20% of their basic pay.Bonuses are paid to supervisors if their teams achieve targets. For example, if the team achieves the target of 100% then the supervisor receives a bonus of 20% of their basic pay. Targets and bonuses for call centre operators and supervisors are given in the table below:Target achieved100%95%90%Bonus paid20%15%10% In week 12 the number of call centre operators and supervisors achieving targets was as follows:Target achieved100%95%90%Call centre operators101825Supervisors013 Required:Calculate the total wage cost in week 12 (to the nearest RM)

Calculation of amount of bonus paid : 10 operators = 10 operators x 36 hours x RM8 per hour x 20%…

Answered: LPC Bank operates a call centre to deal…

Principles of Accounting Volume 2

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ISBN:9781947172609

Author:OpenStax

Publisher:OpenStax

Chapter10: Short-term Decision Making

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LPC Bank operates a call centre to deal with customer queries. The following information is available:
120 call centre operators work in teams. Each team has a supervisor. There are eight supervisors.
Call centre operators are paid RM8 per hour and supervisors are paid RM15 per hour.
All staff work a 36-hour week.
Bonuses are paid to call centre operators if they achieve efficiency and quality targets. For example, if 100% efficiency and quality are achieved the call centre operator receives a bonus of 20% of their basic pay.
Bonuses are paid to supervisors if their teams achieve targets. For example, if the team achieves the target of 100% then the supervisor receives a bonus of 20% of their basic pay.

Targets and bonuses for call centre operators and supervisors are given in the table below:

Target achieved	100%	95%	90%
Bonus paid	20%	15%	10%

In week 12 the number of call centre operators and supervisors achieving targets was as follows:

Target achieved	100%	95%	90%
Call centre operators	10	18	25
Supervisors	0	1	3

Required:

Calculate the total wage cost in week 12 (to the nearest RM)

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