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22 views5 pagesCost Account Labour Cost
A
Uploaded by
AAKIB HAMDANICopyright
© © All Rights Reserved
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/ 5
r 194 ;
BSSHANPRAK AS |
May
* 10 workers = 400 hrs.
Rs 4,000 _
Rs.40
32hours
fon a machine B, a job takes 6 hours to complete, then the wages charged
to that job will be.
6 hours x Rs, 1.25 = Rs. 7.50.
PROBLEMS ON COMPUTATION OF WAGE COST :
For ealulating the tual wages under tine wage, piece wage and Taylors
differential piece wage, the following formulas may be remembered:
Factor Hour Rate = = Rs. 1.25
= Time taken x Wage rate
Units produced x Wage rate
(1) Units produced » Higher wage rate
(for production above standard task)
(2) Units produced » Lower wage rate
(for production at or below standard task)
Time Wage
Piece Wage =
Taylor's System =
Suppose, a worker attends to four automatic machines and is paid wages
at Rs. 5 per hour. If he works for 8 hours during a day, the total factor hours
are 4 factors x 8 hours = 32. If he is paid at Rs. 5 per hour for 8 hours, the
total daily wages will be Rs. 40 and factor hour rate will be computed as follows «
_qaxs96FOR LABOUR COST ws
is 100 hours. A worker is ps
complete the job is 80 hot
I wages eared by the worker under following methods
) Time wage (2) Piece wage,
(North Guj. Uni, S¥, Now. 2013]
‘The wages will be paid to the worker on the basis,
me taken x Wage rate
80 hours * Re. 0.75,
= Rs. 60
Wages System
e, the worker will be paid for 100 hours,
Time * Wage rate
= 100 hours x Re, 0.75 = Rs. 75,
tools. Determine from the following data, the wages payable
under time wage system. ‘
x Yo Z
A Be kc
Working hours during the week
(Time actual 50 4st
‘Wage rate per hour Rs. 2.00 Rs.250 Rs. 225
Ifany worker works in any department for more than 48 hours during the
srk he is paid overtime wage for additional hours at double the normal wage
Calculation of Total Wages under Time Wage
Worker A B Cc
road Woking We $800] 45.00] 48.00
oral wage aes 200| 280] 22
MNormal wages (1 x2) 36.00 12.30} 108.00
Overtime hours aaah
|) Wage rate for overtime 4.00| s.00| 4.50
Overtime wages E00[——|-3.00
| (1) Total wage (3) + (6) 104.00 | 112. 50 | 135.00 r y
ime wages. He com
time wage fy sone
he
A worker is allowed 9 hours to complete a job or
the job in 6 hours on piece wages (payment by results)
per hour.
J cost of product is Rs. 8 and factory overheads are recovereg
a
direct wages.
he factory cost of the product under
ime wage plan (2) Piece wage plan.
culated as follows under both the pla,
ken x Wage rate ay
Wage Plan = Time Allowed x Wage rate
= 9 hours x 50 paise
= Rs. 4.50
Factory Cost under two plans :
Direct Wages
Prime Cost
the earning of workers X and Y under Taylor's Different
Rate System from the following particulars
Standard time One hour for 100 units
2 Rs. 2 per hour
wage rate to be applied
the piece rate below standard
of piece rate at or above standard
In 2 day of 8 hours X produced 700 units and Y produced 900 units. Also
compute the wage cost per unit for both the workers
Sol
ccouNTING FOR LABOUR COST
oF n of X = 700 units which is below standard and so he will
be paid 80% of normal wages.
4 His wage rate per unit ~ 2 paise x 80/100 = 1.6 paise
X's Wage = 700 units x 1.6 paise = Rs. 11.20 |
(4) Y's production is 900 units and so he will be paid at 120% of the
normal piece rate.
is wage mie per unit = 2 pate x a 2.4 pt
2 Y's wage = 900 units « 2.4 paise = Rs. 21.60
[is
Daring the Ist week of February 2011, the Workman Mr. Anand manufactures
4300 articles. He receives wages for a guaranted 48 hours week at the rate of
js. 4 per hour, the estimated time to produce one article is 10 minutes and under
incentive scheme the time allowed is increased by 20%.
Calculate his gross wages according to
(Q) Rowan Premium Bonus
2) Halsey Premium Bonus.
= (Sau. Uni, TY, April, 1997; Nox, 2013]
First find out standard time = 300 units x 10 minutes per unit =3,000 minutes
3,000
Hours = “Z>— = $0 hours
Under incentive scheme the time allowed is increased by 20%
. Additional Hours = $0 x 20% = 10 hours
Standard time for production = $0 hours + 10 hours = 60 hours
() Rowan Plan :
= oS
E=(TxR)+(W+ TD)
= (48 hous x Rs. 4) + (192 x By
= 192 + 38.40
= Rs. 230.40
Standard task during 8 hours = 100 x 8 = 800 units
Rs.2
(2) Standard wage rate per unit =
EI Per alt 00 units
=2 paise ASSHAN PR,
8 AKAs)
May
(@) Halsey Plan
eeqems 2 asa®
®
»
memes
EB oe cane
aes re pi spe Halsey Plan. The
ss available for the work of a worker
Tine saved 25 boars
Dems wo wets
Dari wed pr tn
of time wages.
s. 350.
of prime cos.
(5) Factory cost per unit is Rs. 1,212.
Find out the time allowed to complete the work.
[Sau Uni, TY, Aprit, 2000) |
[[Sotution =]
Rs,
an
12
oo
Rs. 100, Ben factory overbeads Rs. 20_
12 x 20/120)
‘Tuesday
wednesday
Thursday
Friday
saturday
Normal rate ‘
Overtime rate
x Rate per hour
60 « 225 = Rs. 4.80
lsey Plan = Time wages + Bonus :- 660 = Time Wages * 60
Rs. 600
retaken x Rate per hour
“Time taken x RS, 4.80
en = 600/4.80 = 125 hours
= 125 hours + 25 hours = 150 hours
Total BS
'8 hours per day
Rs, 10 per hour
Upto 9 hours in a day at single rate and
over 9 hours in a day at double rate
OR
Upto 48 hours in a week at single rate and
over 48 hours at double rate, whichever
is more beneficial to the workmen.
Caleulation of Normal and Overtime Hours
Factory cost = Rs. 100 + Rs. 20 = 120 Normal ‘Overtime Hours
terial Consumed + Direct Wages) 1,010 | ‘working hours| Single Rate Double Rate
350
Direct Wages 0 | 8 1 =
Direct wages Rs. 660 including 10% time wages bonus. 8 4 2
time wage is then Bonus Rs, 10. 2. Direct wages Rs. 110, | e ‘ i
Bonus = 660 x 10/110 = Rs. 60 | 4 i ea
Boos as per Haley Pan = 2» Time Saved « Rate per hour | a 3 3 working days ina month = 200 ours + 8 hows per day
=25d9
Satomi LaberCot
7 Permonth | Perday
Paral ee “a
vanes) 2200 | 9009
Sia ost DeamesAlowane) 25000 x
19688 188
ross me]
280.00 11.20
¥51025 | The 3
The tie allowed foreach worker
Ibe as follows
‘a 100 units = 3 hours 3 45 hours
so"
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