Accounting for Labour | Concept of Labour

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.

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Labour Turnover | Labour Replacement 

In every organization, workers leave their jobs and new workers join.

This coming and going of workers is called labour turnover.

Too much labour turnover is not good for organization.

Generally, skilled workers leave job and unskilled or semi-skilled workers enter.

Unskilled workers need training.

It increases labour cost.

Sometimes employee leaves a company.

Sometimes company has to replace employees.

Some employees will retire or leave the workforce; it can be beneficial.

It brings new people into the organization with new ideas and new energy.

Keep in Mind (KIM)

Labour turnover ratio (LTR) according to separation method

= No. of separation workers ÷ Average No. of workers during the period × 100

Labour turnover ratio (LTR) according to replacement method

= No. of replaced workers ÷ Average No. of workers during the period × 100

Replacement cost per employee ($)     = Total replaced cost ÷ No. of workers replaced

Preventive cost per employee ($)         = Total preventive cost ÷ No. of workers replaced

Labour turnover ratio (LTR) according to flux method (separation-cum-replacement method)

= (No. of separation workers + No. of replacement workers) ÷ Average No. of workers during the period × 100

Where: 

Average number of worker = (Beginning number + Ending number) ÷ 2

Equivalent annual rate = Turnover % × 365 days ÷ No. of days in period

(A) Brief Answer Questions

Labour Turnover

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

TU: 2072, Q: 7

The following extracted particulars are provided:

Average number of workers              2,000

Cost of selection                                    Rs 25,000

Training cost                                           Rs 20,000

Medical service                                      Rs 30,000

Cost of machine breakdown              Rs 25,000

Number of workers replaced            100

Required: Replacement cost per employee

[Answer: Rs 700]

SOLUTION 

Given and working note: 

Total replacement cost = Cost of selection + Training cost + cost of machine breakdown

= 25,000 + 20,000 + 25,000

= Rs 70,000

Replacement cost per employee

= Total replacement cost ÷ Number of workers replaced

= Rs 70,000 ÷ 100 workers

= Rs 700

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

TU: 2073, Q: 10

The following particulars are extracted from the records of A Company:

Beginning and ending numbers of employees were 100 and 200 respectively

Numbers of employees quit and discharged were 20 and 10 respectively

Employees replaced during the period were 20

Required: Labour turnover rate under separation method

[Answer: 13.33%]

SOLUTION 

Given and working note: 

Average number of employee   = (100 + 200) ÷ 2 = 150

Number of employees replaced            = 20

Labour turnover ratio (LTR) according to replacement method

= (No. of replaced employees ÷ Average No. of workers during the period) × 100

= (20 ÷ 150) × 100

= 0.1333 × 100

= 13.33%

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

2074, Q: 10

The personnel department furnishes you the following extracted particulars:

Beginning numbers of workers 800

Ending numbers of workers 1,000

Numbers of workers discharged 20

Numbers of employees resigned 70

Workers replaced during the period 80

Additional workers employees for expansion plan 100

Required: Labour turnover rate under replacement method

[Answer: 8.89%]

SOLUTION 

Given and working note: 

Average number of workers      = (800 + 1,000) ÷ 2 = 900

Number of employees replaced            = 80

Labour turnover ratio (LTR) according to replacement method

= (No. of workers replaced during the period ÷ Average No. of workers during the period) × 100

= (80 ÷ 900) × 100

= 0.0889 × 100

= 8.89%

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

2076, Q: 10

The following particulars are extracted from the records of A Company:

Beginning and ending numbers of employees were 200 and 300 respectively

Numbers of employees quit and discharged were 25 and 15 respectively

Employees replaced during the period were 35

Required: Labour turnover rate under separation method

[Answer: 16%]

SOLUTION: 

Given and working note: 

Average number of employee = (200 + 300) ÷ 2 = 250

Numbers of employees separated during the period = 25 + 15 = 40

Labour turnover ratio (LTR) under separation method

= (No. of employees separated during the period ÷ Average No. of workers during the period) × 100

= (40 ÷ 250) × 100

= 0.16 × 100

= 16%

######

######

(B) Short Answer Questions

Labour Turnover

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

2072 ii, old Q: 6

Following extracted information is available:

Required: (a) Prevention cost per employees; (b) Replacement cost per employees

[Answer: (a) Rs 20; (b) Rs 1,500]

SOLUTION 

Given and working note: 

Average number of workers = (3,000 + 3,400) ÷ 2                        = 3,200

Preventive cost per employee

= Total preventive cost ÷ Average number of workers

= Rs 64,000 ÷ 3,200 workers

= Rs 20

Replacement cost per employee

= Total replacement cost ÷ Number of workers replaced

= Rs 36,000 ÷ 24 workers

= Rs 1,500

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The post Accounting for Labour | TU Solution | Labour Turnover or Replacement appeared first on EP Online Study.

Accounting for Labour | Concept of Labour

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.

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Taylor’s Differential Piece Rate | Wage by using Taylor’s Differential Rate System  

Fredrick W. Taylor is known as the father of scientific management.

He recommended wages for lower rate 80% and higher rate 125% for standard time.

This system was designed to differentiate between skilled and unskilled workers.

Skilled worker receives higher rate.

Unskilled receives lower rate.

Formulas of Taylor’s Differential Piece Rate

Keep in Mind (KIM)

Gantt Task Systems

This is the combination of Halsey and Rowan premium system.

Under this system, minimum wages is guaranteed.

It protects average workers by providing time rate wages.

Efficient worker gets 20% bonus for standard work.

This system is also known progressive rate system.

There are three alternatives:

Formulas of Gantt Task

Keep in Mind (KIM)

(A) Brief Answer Questions

######

######

(B) Short Answer Questions

Taylor System & Gant Task

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

2061/ii, Q: 6

A worker employed for 150 hours at a wage of Rs 20 per hour has produced 1,440 units. The standard output per hour is 9 units

Required: (1) (a) Wage rate per piece

(b) Total wages under Taylor’s differential piece rate system ranging 83% and 125%

(c) Total wages under Gant’s task bonus system

 [Answer: WRPU = Rs 2.22; Total wage = Rs 4,000; Total wage = Rs 3,840]

SOLUTION 

Given and working note: 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

2063, Q: 6

The different piece rate applied by A Company is as under:

For below standard           = 80% of piece rate

For above standard           = 120% of piece rate

The working hour per day is 8 hour and normal rate of wages per hour is Rs 40. The standard time per unit is 30 minutes. The work completed by a worker is 20 units for one day.

Required: (a) Total wage under straight piece rate; (b) Total wage Taylor’s differential piece rate

[Answer: Total wage = Rs 400 and Rs 480]

SOLUTION 

Given and working note: 

Here, Amount = Rs = $ = £ = € = ₹ = Af = ৳ = Nu = Rf = රු = Br = P = Birr = Currency of your country 

2064, Q: 6

The standard production pre fixed by ABC Manufacturing Company per day per worker is 16 units and working hour per day is 8 hours. The guaranteed piece work rate is Rs 5 per unit. The piece rate above the standard has been fixed at Rs 6.50. The standard job cards of the three workers for a day reported the following details:

Mr. A             12 units                    

Mr. B 16 units                    

Mr. C 20 units

Required: Wages of each worker under the Gantt task and bonus plan

 [Answer: Total wage: A= Rs 80; B = Rs 96; C = Rs 130]

SOLUTION 

Given and working note: 

Standard per unit per day          = 16 units

Working hours per day                = 8 hours

Guaranteed piece work rate      = Rs 5 per unit

Above standard output rate      = Rs 6.50

Worker Mr. A has produced 12 units. These are below standard. So, he will get guaranteed wage only

Wages to Mr. A      

= Standard output × Piece rate

= 16 units × Rs 5

= Rs 80

Worker Mr. B has produces 16 units. These are equal to standard. So he will get 20% bonus of time rate

Wages to Mr. B      

= Standard output × Time rate@120%

= 16 units × Rs 5@120%

= 16 units × Rs 6

= Rs 96

Worker Mr. C has produces 20 units. These are above to standard. So he will get Rs 6.5 per unit given in the question

Wages to Mr. C      

= Standard output × Piece rate

= 20 units × Rs 6.50

= Rs 130

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The post Accounting for Labour | TU Solution | Taylor System | Gantt Task appeared first on EP Online Study.

Accounting for Labour | Concept of Labour

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.

Halsey Premium Plan | Halsey Plan in Accounting for Labour

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.

Formula of Halsey Premium Plan

Rowan Plan | Rowan Plan in Accounting for Labour

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.

Formula of Rowan Premium Plan

Keep in Mind (KIM)

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TU Problems and Solutions | Halsey Plan | Rowan Plan  

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

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

######

######

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

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: 

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

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:

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:

Hourly wage rate

Wages of Amber under Rowan plan

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

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

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

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

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)

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