r1 Re. 1 D Re. 1 The group piece rate is Rs. 1 per unit and the team has produced 150 units. Calculate the gross weekly earnings of each workmen taking into consideration that each individual is entitled to a dearness allowance of Rs. 20 per week. Solution : The group piece earnings will be distributed among the different workers in proportion to their basic time earnings for the time taken by each. Basic time earnings of the four workers are as follows: A 40 hrs. x 50 p. Rs. 20 B 40 hrs. x 75 P. Rs. 30 30 hrs. x Re. 1 Rs. 30 D 20 hrs. x Re. 1 Rs. 20 The ratio group piece wages are Rs. 150. The total earnings of each worker for the week will, therefore, be as follows: Workers Piece work Total Day work Rs. Dearness allowance Rs. Rs. Rs. A 30 2 20 52 B 45 3 20 68 (4 hrs. x 50 P.) = (4 hrs. x 75 P.) = (14 hrs. x Re. 1) = (24 hrs. x Re. 1) = 45 14 20 79 D 30 24 20 74 Total Rs. 150 43 80 273 III Balance of debt system According to this system, the worker is paid on the basis of rate per unit of output but if on some occasions, the earnings by piece rate fall short of the earnings by time rate, the worker is paid according to the time rate. In future this extra payment to him can be recovered if his piece rate earnings exceed the time-rate earnings, this makes the operation of piece wage system effective. It helps a worker to earn money even when he finishes the work in a longer duration due lo certain unavoidable reasons. Thus, in times of need, he can get enough wages and later on the recoupment in times of his extra earnings will not be felt by him. Mustration 2. From the following calculate the amount of wages payable to 'A' for each of the two days of a week: Standard Rate per hour Rs. 2 Standard Rate per piece Rs. 3 Hours of work in a day 8 hours. A produces, 3 pieces on the first day. However, his production goes upto 6 pieces on the second day