In a factory where piece work system is followed with guaranteed minimum wages of ₹120 for eight hours, incentive payments are made according to Rowan bonus scheme. The standard time per unit is 10 minutes. If in a five
CS Executive · Cost and Management Accounting · PYQS · December 2014
In a factory where piece work system is followed with guaranteed minimum wages of ₹120 for eight hours, incentive payments are made according to Rowan bonus scheme. The standard time per unit is 10 minutes. If in a five day week of 40 working hours the actual production is 300 units, what will be the total earnings of the worker —
Answer & Explanation:
Correct Answer: Option (B)
Correct answer: (B) ₹720. Standard time for 300 units = 50 hours. Time saved = 10 hours. Rowan earnings = 40×15 + (10/50)×40×15 = 720.
Topics: Labour Costing
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