A worker whose day wages are Rs. 2.50 per hour received a production bonus under the Rowan

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A worker whose day wages are Rs. 2.50 per hour received a production bonus under the Rowan scheme.

He carried out the following work in a 48-hour week:

Job 1 - 1,500 items at 4 hours per 1,000 Job 2 - 1,800 items at 3 hours per 1,000 Job 3 - 9,000 items at 6 hours per 1,000 Job 4 - 1,500 items for which no “standard time” was fi xed and it was arranged that the worker would be paid a bonus of 25%. Actual time on the job was 4 hours.

Job 5 - 2,000 items at 8 hours per 1,000. Each item was estimated to be half-fi nished.

Job 2 was carried out on a machine running at 90%

effi ciency and an extra allowance of 1/9th of the actual time was given to compensate the worker. Four hours were lost due to power-cut. Calculate the earnings of the worker, clearly stating your assumptions for the treatment given by you for the hours lost due to power-cut.

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Related Book For  book-img-for-question

Cost Accounting

ISBN: 9788131732076

1st Edition

Authors: V. Rajasekaran, R. Lalitha

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