Every manufacturing company and business organization needs human being resources.
These humans being may be resource of administrators and labour.
Without labour, a manufacturing company cannot complete its production.
It is saying that talents, calibers and skilled manpower are other assets of the business organization.
Labour cost is the important part in manufacturing and Construction Company.
After materials, labour cost is the largest part in production.
Every labour has his merits and demerits.
To control labour cost, organization should understand to workers.
To take more work from workers, the organization should satisfy them.
When workers do best work, cost per unit will be decreased.
There are three types of labour.
They are unskilled labour, semi-skilled labour and skilled labour.
Unskilled labour gets fewer wages but skilled labour gets highest wages.
This plan has been introduced by F.H. Halsey in 1891.
He was an American engineer.
This scheme provides workers hourly wage for time taken to do a work plus 50% (0.5 or ½) bonus time saved at hourly rate.
Standard time is pre fixed for every job or work.
Remaining 50% of bonus is left for other workers.
Generally, the bonus percentage varies from 30% to 70%.
If bonus is 30%, remaining 70% distribute to other workers.
If bonus is 40%, remaining 60% distribute to other workers.
Lack of information, bonus is 50%
If there is no saving in the standard time allowance, the worker is paid only his day rate.
Total wages |
= Basic wages + Bonus |
Basic wages |
= Time taken × Wage rate |
Bonus |
= 50% (Standard time – Time taken) × Wage rate |
Or |
= 0.5 (Time saved) × Wage rate |
|
|
Total wages |
= Time taken × Wage rate + 50 % (Standard time – Time taken) × Wage rate |
Or |
= (TT × WR) + 0.5 (ST – TT) × WR |
|
|
Total wages |
= Time taken × Wage rate + 50% × Time saved × Wage rate |
Or |
= (TT × WR) + 0.5 × TS × WR |
This plan is introduced by David Rowan in 1901.
Under this system, basic wage is guaranteed for the actual time attended by the workers.
Standard time is preset for the task or work.
Bonus is allowed to the worker if he/she completes work before standard time.
Total wages |
= Basic wages + Bonus |
Basic wages |
= Time taken × Wage rate |
Bonus |
= [(Standard time – Time taken) ÷ Standard time] × Time taken × Wage rate |
|
|
Total wages |
= Time taken × Wage rate + [(Standard time – Time taken) ÷ Standard time] × Time taken × Wage rate |
Or |
= TT × WR + [(ST – TT) ÷ ST] × TT × WR |
|
|
Total wages |
= Time taken × Wage rate + (Time saved ÷ Standard time) × Time taken × Wage rate |
Or |
= TT × WR + (TS ÷ ST) × TT × WR |
Keep in Mind (KIM)
Actual remuneration = Basic wage = Time taken × Wage rate per hour |
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Group A: Brief Answer Questions
Halsey & Rowan
2072, Q: 8
The following extracted information of a XYZ Company is provided:
Actual time taken by a worker 7 hours
Time allowed for the worker 8 hours
Rate per hour ` Rs 30
Required: Total earnings of worker under Rowan Plan
[Answer: Rs 236.25]
SOLUTION:
Given and working note:
TT 7 hours
ST 8 hours
WR Rs 30
Total earnings under Rowan plan
= TT × WR + [(ST – TT) ÷ ST] × TT × WR
= 7 × Rs 30 + [(8 – 7) ÷ 8] × 7 × Rs 30
= Rs 210 + 0.125 × 7 × Rs 30
= Rs 210 + Rs 26.25
= Rs 236.25
2073, Q: 8
The following extracted information of a worker is provided:
Standard time allowed 20 hours
Time saved by the worker 4 hours
Wage rate per hour Rs 10
Required: Total earnings of worker under Halsey Premium Plan
[Answer: Rs 180]
SOLUTION:
Given and working note:
Standard time allowed 20 hours
Time saved 4 hours
Wage rate per hour Rs 10
Time taken = ST – Saving = 20 – 4 = 16
Total earnings of worker under Halsey premium plan
= TT × WR + 50% (ST – TT) × WR
= TT × WR + 50% × Time saved × WR
= 16 × Rs 10 + 0.5 × 4 × Rs 10
= Rs 160 + Rs 20
= Rs 180
2074, Q: 8
The standard time fixed for a job is 10 hours. The hourly rate of guaranteed wage is Rs 16. The worker gets Rs 144 under Halsey plan.
Required: Time saved by the worker
[Answer: 2 hours; *TT = 8 hours]
SOLUTION:
Given and working note:
Standard time allowed 10 hours
Wage rate per hour Rs 16
Total wages under Halsey Rs 144
Time saved by the worker
Total wages |
= TT × WR + 50% (ST – TT) × WR |
Rs 144 |
= TT × Rs 16 + 0.5 (10 – TT) × Rs 16 |
Rs 144 |
= 16TT + 80 – 8TT |
144 – 80 |
= 16TT – 8TT |
64 |
= 8TT |
TT |
= 64 ÷ 8 |
|
= 8 hours |
|
|
Time saved |
|
= Standard time – Time taken |
|
= 10 – 8 |
|
= 2 hours |
|
|
2075, Q: 8
The following extracted particulars of a worker are provided:
Standard time allowed 20 hours
Actual time taken 15 hours
Wage rate per hour Rs 30
Required: Total earnings of worker under Halsey Premium Plan
[Answer: Rs 525]
SOLUTION:
Given and working note:
Standard time allowed 20 hours
Actual time taken 15 hours
Wage rate per hour Rs 30
Total earnings of worker under Halsey premium plan
= TT × WR + 50% (ST – TT) × WR
= 15 × Rs 30 + 0.5 (20 – 15) × Rs 30
= Rs 450 + Rs 75
= Rs 525
2076, Q: 8
The standard time fixed for a job is 50 hours. The hourly rate of guaranteed wage is Rs 10 per hour. Actual hour spend is 35 hours.
Required: Total wage earned by the worker under Rowan plan
[Answer: Rs 455]
SOLUTION:
Given and working note:
Standard time allowed 50 hours
Actual time taken 35 hours
Wage rate per hour Rs 10
Total earnings under Rowan plan
= TT × WR + [(ST – TT) ÷ ST] × TT × WR
= 35 × Rs 10 + [(50 – 35) ÷ 50] × 35 × Rs 10
= Rs 350 + 0.3 × 35 × Rs 10
= Rs 350 + Rs 105
= Rs 455
2077, Q: 8
A Manufacturing Company provides you the following extracted information:
Standard time allowed 150 hours
Actual time taken 120 hours
Wage rate per hour Rs 30
Required: Total earnings under Rowan Premium Plan
[Answer: Rs 4,320]
SOLUTION:
Given and working note:
Standard time allowed 150 hours
Actual time taken 120 hours
Wage rate per hour Rs 30
Total earnings under Rowan premium plan
= TT × WR + [(ST – TT) ÷ ST] × TT × WR
= 120 × Rs 30 + [(150 – 120) ÷ 150] × 120 × Rs 30
= Rs 3,600 + 0.2 × 120 × Rs 30
= Rs 3,600 + Rs 720
= Rs 4,320
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######
Group B: Short Answer Questions
Halsey and Rowan
2060/i, Q: 8
A worker under Halsey premium plan earned a bonus Rs 50. He took the total of 35 hours to complete his task. The wage rate per hour is Rs 10.
Required: (a) Time saved by the worker; (b) Total wage earned Rowan premium plan
[Answer: (a) 10 hours; (b) Rs 427.78; *ST = 45 hours]
SOLUTION:
Given and working note:
Bonus under Halsey Rs 50
Time taken (TT) 35 hours
Wage rate per hour Rs 10
(a) Time saved by the worker |
||
Bonus under Halsey |
= 50% (ST – TT) × WR |
|
Rs 50 |
= 0.5 (ST – 35) × Rs 10 |
|
Rs 50 |
= 5ST – Rs 175 |
|
Rs 50 + Rs 175 |
= 5ST |
|
5ST |
= Rs 225 |
|
ST |
= Rs 225 ÷ 5 |
|
|
= 45 hours |
|
|
||
Again, |
||
Time saved |
= ST – TT |
|
|
= 45 – 35 |
|
|
= 10 hours |
|
|
||
(b) Total wage earned Rowan premium plan |
||
= TT × WR + Time saved ÷ ST × TT × WR |
||
= 35 × Rs 10 + 10 ÷ 45 × 35 × Rs 10 |
||
= Rs 350 + Rs 77.78 |
||
= Rs 427.78 |
||
2060/ii, Q: 6
The standard job card in a factory contains the following particulars:
Standard product per hour 10 units
Wages rate per hour Rs 10
Working hours per day 8 hours
The time cards of two workers worked for 1 day reported the following details:
Worker A 100 units
Worker B 120 units
Required: (a) Standard time of both workers; (b) Wages earned by A under Halsey premium plan
(c) Wages earned by B under Halsey premium plan
[Answer: (a) ST: A = 10 hours; B = 12 hours; (b) Rs 90;
(c) Rs 100] *ST = Output ÷ 10 units
SOLUTION
Given and working note:
Standard product per hour = 10 units
Wage rate (WR) per hour = Rs 80
Working hour per day = 8 hours
Standard time
Standard time = Output ÷ 10 units
Worker A = 100 units ÷ 10 = 10 hours
Worker B = 120 units ÷ 10 = 12 hours
Total wages under Halsey premium plan worker A
= TT × WR + 0.5 (ST – TT) × WR
= 8 × Rs 10 + 0.5 (10 – 8) × Rs 10
= Rs 80 + Rs 10
= Rs 90
Total wages under Halsey premium plan worker B
= TT × WR + 0.5(ST – TT) × WR
= 8 × Rs 10 + 0.5 (12 – 8) × Rs 10
= Rs 80 + Rs 20
= Rs 100
2061/i, Q: 6
TU: 2061
The standard working hours fixed for a job was 18 hours, while time taken by a worker was only 12 hours. The worker received Rs 240 as bonus under Rowan premium plan.
Required: (a) Labour rate per hour under Rowan premium plan
(b) Total wages earned by the worker under Rowan premium plan.
(c) Total wages earned by the worker under Halsey premium plan if bonus 60%.
[Answer: (a) LRPH = Rs 15; (b) Total wage = Rs 240; (c) Total wages = Rs 216]
SOLUTION
Given and working note:
Standard time (ST) for a job = 18 hours |
|
Time taken (T T) by worker = 12 hours |
|
Bonus under Rowan premium plan = Rs 60 |
|
|
|
Labour or wage rate per hour |
|
Bonus under Rowan |
= [(ST – TT) ÷ ST] × TT × WR |
Rs 60 |
= [(18 – 12) ÷ 18] × 12 × WR |
60 |
= 4 WR |
WR |
= Rs 15 per hour |
|
|
Therefore, Wage rate (WR) = Rs 15 per hour |
|
|
|
Total wage under Rowan plan |
|
= Basic wages + Bonus |
|
= TT × WR + Bonus |
|
= 12 × Rs 15 + Rs 60 |
|
= Rs 180 + Rs 60 |
|
= Rs 240 |
|
|
|
Total wages under Halsey premium plan |
|
= TT × WR + 0.5(ST – TT) × WR |
|
= 12 × Rs 15 + 0.6 (12 – 8) × Rs 15 |
|
= Rs 180 + Rs 36 |
|
= Rs 216 |
2062, Q:
The standard time output ratio is one hour for 5 units. The wage of Rs 16per hour is payable to skilled workers. The output realized by a worker working for 36 hours during last week is 200 units
Required: (a) Standard time; (b) Total wage under Halsey premium plan; (c) Total wage under Rowan premium plan
[Answer: ST = 40 hours; Total wage = Rs 608; Total wage = Rs 633.60]
SOLUTION
Given and working note:
Standard output per hour = 5 units
Wage rate (WR) per unit = Rs 16
Time taken (T T) by worker = 36 hours
Produced by worker = 200 units
Standard time (ST) per hour
5 units are produced = 1 hour
200 units are produced = 200 × 1÷ 5 = 40 hours
Total wages under Halsey premium plan
= TT × WR + 50% (ST – TT) × WR
= 36 × Rs 16 + 0.5 (40 – 36) × Rs 16
= Rs 576 + Rs 32
= Rs 608
Total wages under Rowan premium plan
= TT × WR + [(ST – TT) ÷ ST] × TT × WR
= 36 × Rs 16 + [(40 – 36) ÷ 40] × 36 × Rs 16
= Rs 576 + Rs 57.60
= Rs 633.60
2065, Q: 6
The details contained in the job card of productive workers of a factory are as follows:
The time needed to produce one unit of output is 20 seconds
The standard ware rate per hour is Rs 9
The actual time spent by the worker in the job card is 140 hours in the last two weeks.
Required: (1) Units produced in 1 hour and in 140 hours; (2) Wage rate per unit
(3) Wage under piece rate system if the worker realizes actual output without loss of the time allowed.
(4) Wage under Rowan plan if the worker realizes 27,000 units during the period.
[Answer: Output in 1 hour = 180 units; in 140 hour = 25,200 units;
(2) WRPU = Re 0.05; (3) Total wage = Rs 1,260; (4) Total wage = Rs 1,344]
Production in 3,600 second (1 hour) = 3,600 ÷ 20 units = 180 units
*WRPU = Rs 9 ÷ 180 units = Re 0.05
*Production in 504,000 second = 504,000 ÷ 20 units = 25,200 units
*Standard time = [(27,000 units x 20) ÷ (60×60)] = 150 hour
SOLUTION
Time needs for 1 unit = 20 seconds
Standard wage per hour = Rs 9
Actual time (Time taken) spend = 140 hours
So, Standard time = 140 × 60 × 60 = 504,000 seconds
Output
In 20 seconds, unit produced |
= 1 |
|
In 3,600 second (1 hour), units produced |
= 1 × 3,600 ÷ 20 |
= 180 units |
In 504,000 seconds, units produced |
= 1 × 504,000 ÷ 20 |
= 25,200 units |
Wage rate per unit (WRPU)
= Wage rate per hour ÷ Output in one hour
= Rs 9 ÷ 180 units
= Re 0.05
Wage under piece rate system
= Output × WRPU
= 25,200 units × Re 0.05
= Rs 1,260
Wage under Rowan premium plan
1 hour = 60 × 60 seconds = 3,600 seconds
1 unit is produced = 20 second
27,000 units are produced = 27,000 × 20 = 5,40,000 second or 540,000 ÷ 3,600 seconds = 150 hours
Total earnings under Rowan
= T T × WR + [(ST – TT) ÷ ST] × TT × WR
= 140 × Rs 9 + [(10) ÷ 150] × 140 × Rs 9
= Rs 1.260 + 0.067 × 140 × Rs 9
= Rs 1.260 + Rs 84
= Rs 1,344
2066, Q: 6
During a month, Amber and Bishwa, the workers of AK Manufacturing Concern were involved in certain works. They were paid incentive bonus under Rowan plan system. The time allotted to the product is 45 hours. The weekly time spent and wages earned were as under:
Workers |
Time spend |
Total wages earned |
|
Amber |
30 hours |
Rs 80 |
|
Bishwa |
35 hours |
? |
|
Required: (1) Hourly wage rate; (2) Wages of Bishwa under Rowan plan; (3) Worker’s earning under Halsey plan
[Answer: (1) WRPH = Rs 2; (2) Earning = Rs 93.33; (3) Earning 75 and Rs 80]
SOLUTION
Given and working note:
Amber |
Bishwa |
Time allotted (ST) 45 hours |
Time allotted (ST) 45 hours |
Time spend (TT) 30 hours |
Time spend (TT) 35 hours |
Time saved = 45 – 30 = 15 hours |
Time saved = 45 – 35 = 10 hours |
Wages earned Rs 80 |
Wages earned? |
Hourly wage rate
Wages of Amber under Rowan plan
Wages earning |
= TT × WR + [(ST – TT) ÷ ST] × TT × WR |
|
Rs 80 |
= 30 × WR + [(45 – 30) ÷ 45] × 30 × WR |
|
80 |
= 30 WR + 15 ÷ 45 × 30 WR |
|
80 |
= 30 WR + 10 WR |
|
80 |
= 40 WR |
|
WR |
= Rs 80 ÷ 40 |
|
|
= Rs 2 per hour |
|
|
||
Wages of Bishwa under Rowan plan |
||
= TT × WR + Time saved ÷ ST × TT × WR |
||
= 35 × Rs 2 + 15 ÷ 45 × 35 × Rs 2 |
||
= Rs 70 + Rs 23.33 |
||
= Rs 93.33 |
||
|
||
|
||
Total earning under Halsey plan |
||
Total earning |
= TT × WR + 0.5 (ST – TT) × WR |
|
Amber |
= 30 × Rs 2 + 0.5 (45 – 30) × Rs 2 |
|
|
= Rs 60 + Rs 15 |
|
|
= Rs 75 |
|
|
|
|
Bishow |
= 35 × Rs 2 + 0.5 (45 – 35) × Rs 2 |
|
|
= Rs 70 + Rs 10 |
|
|
= Rs 80 |
|
2067, Q: 6 Wrong question
Following information is supplied to you:
Standard time allowed for a job 16 hours. The hourly rate of guarantee wage is Rs 12. A worker saved time and he gets total wages of Rs 255 under Halsey premium plan.
Required: (1) Time taken by the worker; (2) Time saved by the worker; (3) Total wages under Rowan plan
[Answer: (1) 26.5 hours; (2) Nil or NOT possible; (3) Rs 318]
SOLUTION
Given and working note:
Standard time (ST) = 16 hours
Wage rate per hour (WR) = Rs 12
Total wages under Halsey = Rs 255
Standard time
Total wages |
= TT × WR + 50% (ST – TT) × WR |
Rs 255 |
= TT × Rs 12 + 0.5 (16 – TT) × Rs 12 |
Rs 255 |
= 12TT + 96 – 6TT |
255 – 96 |
= 12TT – 6TT |
159 |
= 6TT |
TT |
= 159 ÷ 6 |
|
= 26.5 hours |
|
|
Time saved |
|
= Standard time – Time taken |
|
Here, time taken (TT) is more than standard time (ST); therefore, time saved is NOT possible. |
|
|
|
|
|
Total wages under Rowan System |
|
= TT × WR + Time saved ÷ ST × TT × WR |
|
= 26.5 × Rs 12+ 0 ÷ 16 × 26.5 × Rs 12 |
|
= Rs 318 + 0 |
|
= Rs 318 |
|
|
2068, Q: 6
A worker takes 6 hours to complete a job under a scheme of payment by results. The standard time allowed for the job is 9 hours. The wage rate is Rs 15 per hour.
Required: Total earning of the worker (a) Halsey plan; (b) Rowan incentive plan
[Answer: (a) Rs 112.50; (b) Rs 120]
SOLUTION:
Given and working note:
Time taken (TT) = 6 hours
Standard time (ST) = 9 hours
Wage rate (WR) = Rs 15 per hour
Total earning under Halsey
= TT × WR + 50% (ST – TT) × WR
= 6 × Rs 15 + 0.5 (9 – 6) × Rs 15
= Rs 90 + Rs 22.50
= Rs 112.50
Total earning under Rowan
= TT × WR + [(ST – TT) ÷ ST] × TT × WR
= 6 × Rs 15 + [(9 – 6) ÷ 9] × 6 × Rs 15
= Rs 90 + 0.33 × Rs 90
= Rs 90 + Rs 30
= Rs 120
2069, Q: 6
A worker receives an ordinary day rate of wage Rs 160 per day of 8 hours. The standard output has been fixed at 8 units per hour for premium bonus. On a certain day, the output completed by the worker is 80 units.
Required: Total wages payable to the worker under Halsey and Rowan?
[Answer: Halsey Rs 180; Rowan Rs 192]
SOLUTION
Given and working note:
8 units produced in = 1 hour
Standard time (ST) = 80 ÷ 8 = 10 hours
Time taken (TT) = 8 hours
Wage rate per hour (WR) = Rs 160 ÷ 8 hours = Rs 20
Total wages under Halsey and Rowan?
Total earning under Halsey
= TT × WR + 50% (ST – TT) × WR
= 8 × Rs 20 + 0.5 (10 – 8) × Rs 20
= Rs 160 + Rs 20
= Rs 180
Total earning under Rowan
= TT × WR + [(ST – TT) ÷ ST] × TT × WR
= 8 × Rs 20 + [(10 – 8) ÷ 10] × 8 × Rs 20
= Rs 160 + 0.2 × Rs 160
= Rs 160 + Rs 32
= Rs 192
2070, Q: 6
Assume the following data concerning the earning of a worker under Halsey premium plan:
Total earnings Rs 440
Guaranteed wage rate per hour Rs 40
Standard pre-fixed time 12 hours
Required: (a) Time taken by the worker for the job; (b) Bonus earned by the worker
[Answer: (a) 10 hours; (b) Rs 40]
SOLUTION
Given and working note:
Total earnings (Halsey) = Rs 440
Wage rate per hour (WR) = Rs 40
Standard time (ST) = 12 hours
Total wages under Halsey
Total wages |
= TT × WR + 50% (ST – TT) × WR |
Rs 440 |
= TT × Rs 40 + 0.5 (12 – TT) × Rs 40 |
Rs 440 |
= 40TT + 240 – 20TT |
440 – 240 |
= 40TT – 20TT |
200 |
= 20TT |
TT |
= 200 ÷ 20 |
|
= 10 hours |
|
|
|
|
Time saved |
|
= Standard time – Time taken |
|
= 12 – 10 |
|
= 2 hours |
|
|
|
Bonus under Halsey |
|
= 50% (ST – TT) × WR |
|
= 0.5 (12 – 10) × Rs 40 |
|
= Rs 40 |
2071, Q: 6a
A worker completes a job in a certain number of hours. The standard time allowed for the job is 20 hours and hourly wage rate is Rs 20. The worker earns Rs 350 under Halsey plan.
Required: (a) Time saved by the worker; (b) Total wage under Rowan plan
[Answer: (a) 5 hours; (b) Rs 375; *TT = 15 hours]
SOLUTION:
Given and working note:
Standard time (ST) 20 hours
Wage rate (WR) Rs 20 per hour
Total wage under Halsey Rs 350
(a) Time saved by the worker
Total wages |
= TT × WR + 50% (ST – TT) × WR |
Rs 350 |
= TT × Rs 20 + 0.5 (20 – TT) × Rs 20 |
Rs 350 |
= 20TT + 200 – 10TT |
350 – 200 |
= 20TT – 10TT |
150 |
= 10TT |
TT |
= 150 ÷ 10 |
|
= 15 hours |
|
|
Time saved |
|
= Standard time – Time taken |
|
= 20 – 15 |
|
= 5 hours |
|
|
|
Total earning under Rowan |
|
= TT × WR + [(ST – TT) ÷ ST] × TT × WR |
|
= 15 × Rs 20 + [(20 – 15) ÷ 20] × 15 × Rs 20 |
|
= Rs 300 + 0.25 × 15 × Rs 20 |
|
= Rs 300 + Rs 75 |
|
= Rs 375 |
|
|
2072/Old, Q: 6
A worker takes 80 hours to do a job; for which time allowed is 100 hours. His rate is Rs 6 per hour.
Calculate the worker’s remuneration under (a) Halsey plan; (b) Rowan plan
[Answer: (a) Rs 540; (b) 576]
SOLUTION:
Given and working note:
Time taken (TT) 80 hours
Time allowed (ST) 100 hours
Wage rate (WR) Rs 6 per hour
(a) Remuneration under Halsey plan
= TT × WR + 50% (ST – TT) × WR
= 80 × Rs 6 + 0.5 (100 – 80) × Rs 6
= Rs 480 + Rs 60
= Rs 540
(b) Remuneration under Rowan plan
= TT × WR + [(ST – TT) ÷ ST] × TT × WR
= 80 × Rs 6 + [(100 – 80) ÷ 100] × 80 × Rs 6
= Rs 480 + 0.2 × 80 × Rs 6
= Rs 480 + Rs 96
= Rs 576
2073/Old, Q: 6
The standard time allowed for a job is 20 hours. The wage rate per hour is Rs 8.
Mr Y, a worker gets Rs 140 under Halsey premium plan.
Required: (a) Time saved by the worker; (b) Total earning under Rowan
[Answer: (a) 5 hours; (b) Rs 150; *TT = 15 hours]
SOLUTION:
Given and working note:
Standard time (ST) 20 hours
Wage rate (WR) Rs 8 per hour
Total wages Rs 140
(a) Time saved by the worker
Total wages |
= TT × WR + 50% (ST – TT) × WR |
Rs 140 |
= TT × Rs 8 + 0.5 (20 – TT) × Rs 8 |
Rs 140 |
= 8TT + 80 – 8TT |
140 – 80 |
= 8TT – 4TT |
60 |
= 4TT |
TT |
= 60 ÷ 4 |
|
= 15 hours |
|
|
Time saved |
|
= Standard time – Time taken |
|
= 20 – 15 |
|
= 5 hours |
|
|
|
Total earning under Rowan |
|
= TT × WR + [(ST – TT) ÷ ST] × TT × WR |
|
= 15 × Rs 8 + [(20 – 15) ÷ 20] × 15 × Rs 8 |
|
= Rs 120 + 0.25 × 15 × Rs 8 |
|
= Rs 120 + Rs 30 |
|
= Rs 150 |
|
|
2074/Old, Q: 6
The standard time fixed for a job is 50 hours. The hourly rate of standard wage is Rs 10. Active time spent is 35 hours.
Required: (a) Time saved by the worker; (b) Total wage earned by the worker under Rowan
[Answer: (a)
Time saved |
= Standard time – Time taken |
= 50 – 35 |
= 15 hours |
|
Total earning under Rowan |
= TT × WR + [(ST – TT) ÷ ST] × TT × WR |
= 35 × Rs 10 + [(50 – 35) ÷ 50] × 35 × Rs 10 |
= Rs 350 + 0.3 × 35 × Rs 10 |
= Rs 350 + Rs 105 |
= Rs 455 |
|
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