Cost and Management Accounting

Intermediate

Pres.JI A worker is allowed $10$ hours to complete a job on daily wages. He takes $6$ hours to complete the job under a scheme of payment by results. His day rate is $6$ per hour and piece rate is $36.$ The material cost of the product is $40$ and the overheads are charged at $150\%$ of the total direct wages. Calculate the factory cost of the product under $-$

$($i$)$ Piece Work Plan:

$($ii$)$ Rowan Plan; and

$($iii$)$ Halsey Plan.

$[$Ans$.130$; $($ii$)166$; $($c$)160.]$

$\{$CS $($Inter$)$ Dec. $1998\}$