Solution 1
Calculation of Direct Wages:
Job No. Hours Worked Rate per hour (Rs.) Amount (Rs.)
305 20 50 1,000
310 10 50 500
320 8 50 400
Total 38 Hours - 1,900
Direct Wages Rs 1,900
Calculation of Normal Idle Time:
Normal Idle time in a day = 12 minutes
Normal idle time in a week = 12min. x 5 days
= 60 minutes/60 Minutes
= 1 hour
Indirect Wages = 1 hour x Rs. 50 = Rs.50
Calculation of Abnormal Idle Time
Abnormal Idle Time = Total working hours – Actual Hours worked – Normal Idle time
= 42 hours – 38 Hours – 1 hour
= 3 Hours
Abnormal Loss = 3 hours x Rs. 50 = Rs. 150
Solution 2
Calculation of Direct Wages:
Job No. Hours Worked Rate per hour (Rs.) Amount (Rs.)
A 60 6 360
B 35 6 210
C 52 6 312
Total 147 Hours - 882
Direct Wages Rs 882
Calculation of Normal Idle Time:
Normal Idle time in a day = 15 minutes + 30 minutes = 45 minutes
Normal idle time in a week = 45 minutes x 6 days = 270minutes
= 270/60 = 4.5 Hours
Normal idle time in 4 weeks = 4.5 hours x 4 = 18 Hours
Indirect Wages = 18 hour x Rs.6 = Rs. 108
Calculation of Abnormal Idle Time
Total working hours in a week 48 hours
Total working hours in 4 weeks = 48 hours x 4 = 192 hours
Abnormal Idle Time = Total working hours – Actual Hours worked – Normal Idle time
= 192 hours – 147 hours – 18 hours
= 27 Hours
Abnormal Loss = 27 hours x Rs.6 = Rs. 162
Solution 3
i) Calculation of earnings of the worker under straight piece rate system
= Units produced x Rate per unit
= 150 pieces x Rs. 3
= Rs.450
ii) Calculation of earnings of the worker under differential piece rate system
Here, Normal rate = Rs. 3
Lower Rate = Rs. 3 x 80% = Rs. 2.40
Higher Rate = Rs. 3 x 120% = Rs. 3.60
Since, the actual production 150 units is greater than the normal output 120 units, the higher rate will
be applied.
Earning = Units Produced x Higher Piece Rate
= 150 units x Rs. 3.60
= Rs. 540
iii) Calculation of earning under Halsey premium scheme (50%):
Time allowed to produce 1 unit = 24 minutes
Time allowed to produce 150 units = 150 units x 24 minutes
= 3600 minutes
= 3600/60 hours
= 60 hours
Times saved = Time allowed – Time taken
= 60 hours – 48 hours
= 12 hours
Regular Wages = Time taken x Rate per hour
= 48 hours x Tk 7.50
= Tk 360
Bonus = 50% of time saved x Rate per hour
= (50% x 12 Hours) x Tk 7.50
= Tk 45
Total earning = Regular wages + Bonus
= Tk 360 + Tk 45
= Tk 405
iv) Calculation of earning under Rowan premium scheme :
Time allowed to produce 1 unit = 24 minutes
Time allowed to produce 150 units = 150 units x 24 minutes
= 3600 minutes
= 3600/60 hours
= 60 hours
Times saved = Time allowed – Time taken
= 60 hours – 48 hours
= 12 hours
Regular Wages = Time taken x Rate per hour
= 48 hours x Tk 7.50
= Tk 360
Time Taken
Bonus = x Time Saved x Rate per hour
Time Allowed
48 Hours
== x 12 Hours x Tk 7.50
60 Hours
= Tk 72
Total earning = Regular wages + Bonus
= Tk 360 + Tk 72
= Tk 432
Solution 4
Workings:
a) Piece rate per unit = Rate per hour/ Units produced per hour
= Tk4/ 10 units
= Tk 0.40
b) Working Hours in a week = 8 hours x 6 days = 48 hours
c) Standard production per hour = 10 units
Standard production in 48 hours = 48 x 10 = 480 units
d) Differential rates to be applied-
Normal rate = Tk 0.40
Higher Rate = 0.40 x 125% = Tk 0.50
Lower Rate = 0.40 x 75% = Tk 0.30
Requirement 1
Calculation of earning under straight piece rate system: (Units produced x Piece rate per unit)
Name Units Produced Rate per unit Amount
Salam 410 0.40 164
Kabir 500 0.40 200
Tipu 460 0.40 184
Mesbah 520 0.40 208
Total Tk 756
Requirement 2
Calculation of earning under differential piece rate system
Name Units Produced Standard Output Rate to be Amount
applied
Salam 410 480 410 x 0.30 123
Kabir 500 480 500 x 0.50 250
Tipu 460 480 460 x 0.30 138
Mesbah 520 480 520 x 0.50 260
Total 771
Working Hours
8 Hours x10 = Tk 80...Regular wages
Bonus = (4 hours x 50%) x Tk 10 = Tk 20
Tk 80+ Tk 20 = Tk 100
Time saved = Time allowed – Time taken
= 12 hours- 8 hours = 4 hours
Solution 5
i) Earnings for the day = 8 hours x Rs. 4 = Rs.32
ii) Workings:
Piece rate per unit = Rs.4 /10 units = Rs. 0.40
Calculation of effective rate of earning per hour under straight piece rate system:
Name Units Produced Piece rate Amount Hours Effective rate per
worked hour
Govind 80 0.40 32 8 = Rs. 32/8
= Rs.4
Ram 100 0.40 40 8 = Rs.40/8
= Rs 5
Shyam 120 0.40 48 8 = Rs. 48/8
= Rs. 6
