Question

During one week the workman x manufactured 200 units.He recived wages for a guaranteed 44 hours week at the rate of Rs. 15 per hour .THE time allowed to produce one unit is 18 minutes . Calculate his gross wages under each of the following methods of remunerating labour :
(a) Time rate
(b) Piece rate with guaranteed weekly wages
(c) Halsey premium plan ,50% bonus
(d) Rowan premium plan

Answer 1

We need to calculate earning per hour under bonus scheme
Therefore standard hour for the production will be 200 x 18 / 60
= 60 hours.
Now original hour is 45 hours.
Therefore Earnings will be = hours worked x rate per hour + ½ (standard hour – original hour) x Rate per hour
= 45 x Rs 1.80 + ½ (60 – 45) x 1.80
= Rs 81 + Rs 13.50
= Rs 94.50
Therefore earnings per hour is Rs 94.50 / 45
= Rs 2.10 per hour.
Now under Rowan Bonus Scheme
Earnings = Original hour x Rate per hour + Original hour / standard hour x (standard hour - Original hour ) x R
= 45 x Rs 1.80 + 45 / 60 x (60 – 45) x Rs 1.80
= Rs 81 + Rs 20.25
= Rs 101.25
Earnings per hour = Rs 101.25 / 45 hours
= Rs 2.25 per hour.