Model: Piece-work premium and Selling price 2 fi tters, one labourer and one boy undertake a job on piece for a rate of Rs.1,890. The time spent by each of them is 110 ordinary working hours. The rates of pay on time-rate basis are Rs. 3.00 per hour for each of the two fi tters, Rs. 2 per hour for the labourer and Re 1.00 per hour for the boy.

You are required to calculate as follows:

(a) The amount of piece-work premium and the share of each worker when the piece-work premium is divided proportionately to the wages paid.

(b) The selling price of the above job on the basis of the following additional data:

Cost of direct materials = Rs. 3,110.

Work overhead at 20% of prime cost.

Selling overhead at 10% of works cost.

Profi t at 20% on the cost of sales