During audit of accounts of G. Company, your assistant found errors in the calculation of the wages of factory workers and he wants you to verify his work.

He has extracted the following information:

(i) The contract provides that the minimum wage for a worker is his base rate. It is also paid for downtimes (that is, the machine is under repair or the worker is without work). The standard work week is 40 hours. For overtime production, workers are paid 150 percent of base rates.
(ii) Straight Piece Work - The worker is paid at the rate of 20 paise per piece.

(iii) Percentage Bonus Plan - Standard quantities of production per hour are established by the engineering department. The workers’ average hourly production, determined from his total hours worked and his production, is divided by the standard quantity of production to determine his efficiency ratio. The efficiency ratio is then applied to his base rate to determine his hourly earnings for the period.
(iv) Emerson Efficiency Plan - A minimum wages is paid for production upto 66 2/3% of standard output or efficiency. When the workers production exceeds 66 2/3 % of the standard output he is paid bonus as per the following table:

Your assistant has produced the following schedule pertaining to certain workers of a weekly pay roll:

* Total hours of Mohan include 6 overtime hours.
Prepare a schedule showing whether the above computation of workers' wages are correct or not. Give details.

Transcribed Image Text:

Efficiency Level Upto 66% 2, Above 66% to 79% 3 80% - 99% 100% - 125% Bonus Nil 10% 20% 45%