5

No. of units x Rate per unit 400 units x Rs.0.20 = Rs. 80. Gross wages (computed) as per incentive plan 2. Wages for Mohan Minimum Wages Total Normal Hours x Rate per hour + Overtime Hours x Overtime Rate per Hour 40 hours x Rs. 1.80 +6 hours x Rs. 2.70 Rs. 72 + Rs. 16.20 = Rs. 88.20 455 units x Rs.0.20=Rs. 91.00 Gross wages (Computed) as per incentive plan 3. Wages for John Minimum Wages 40 hours x Rs. 1.80 +4 hours x Rs. 270 Rs. 72+ Rs. 10.80 = Rs. 82.80 425 units x Rs.0.20 = Rs. 85 Gross wages (Computed) as per incentive plan 4. Wages for Harish Actual ProductiMimepun Wages X100 Standard Production per Hour Efficiency of Worker 40 hours x Rs. 2.20 = Rs. 88 Hourly Rate (250 units/40 hours) -x100 =1256 (200 units/40 hours) Rate per hour x Efficiency of Worker Rs. 2.20 x 125% = Rs. 2.75 40 hours x Rs. 2.75 = Rs. 110/- Gross Wages as percentage of bonus plan- 5. Wages for Mahesh Minimum Wages 40 hours x Rs. 2.10 = Rs. 84 Efficiency of Worker (250 units/40 hours) x 100 = 80% (300 units/40 hours) Bonus (as per Emerson's plan) Total Minimum wages x Bonus percentage Rs. 84 x 20% = Rs. 16.80 Gross Wages as per Emerson's Efficiency Plan Minimum wages + Bonus Rs.84 + Rs. 16.80 = Rs. 100.80 = 6. Wages for Anil Minimum Wages 40 hours x Rs. 2 = Rs. 80 600 Efficiency of Worker 600 x 100 = 120% 500 Bonus (as per Emerson's plan) = Rs. 80 x 45% = Rs. 36 Gross Wages as per Emerson's Efficiency Plan Rs. 80+ Rs. 36 = Rs. 116 Illustration 7: In a manufacturing unit, a multiple piece rate plans is operated as under: (1) Basic piece rate up to 85% efficiency. ) 115% basic piece rate between 90% and 100% efficiency. ( 125% basic piece rate above 100% efficiency. The workers are eligible for a "Guaranteed Day Rate which is equal to 75% efficiency and the piece rate is Rs.2.00 per piece. Compute the labour cost per piece at 5% intervals between 65% and 125% efficiency, assuming that at 100% efficiency 60 pieces are produced per day