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Assignment - 2

The document presents multiple problems related to wage calculations, labor turnover, overhead absorption rates, job order costing, and economic batch quantity in a factory setting. It includes specific details for different workers under various piece rate systems, methods for calculating labor turnover, and the allocation of overhead costs across production departments. Additionally, it addresses the selling price calculation for a job and the determination of economic batch quantity for production efficiency.

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dhwanigupta5413
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10 views2 pages

Assignment - 2

The document presents multiple problems related to wage calculations, labor turnover, overhead absorption rates, job order costing, and economic batch quantity in a factory setting. It includes specific details for different workers under various piece rate systems, methods for calculating labor turnover, and the allocation of overhead costs across production departments. Additionally, it addresses the selling price calculation for a job and the determination of economic batch quantity for production efficiency.

Uploaded by

dhwanigupta5413
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Problem 1

In a factory using Taylor Differential Piece Rate System, the following details are given:
Standard output = 50 units per day
Normal piece rate = ₹8 per unit
Differential rates:
80% of piece rate for output below standard
120% of piece rate for output equal to or above standard
Three workers A, B, and C produced:
Worker Units Produced
A 45
B 50
C 60
Required Calculate the wages payable to each worker.
Problem 2
A factory follows Merrick Differential Piece Rate System.
Standard output = 80 units per day
Piece rate = ₹5 per unit
Differential rates:
Up to 83% of standard → 100% rate
83% to 100% → 110% rate
Above 100% → 120% rate
Workers produced the following output:
Worker Units Produced
X 60
Y 70
Z 90
Required:
Calculate the earnings of each worker.

Problem 3
The following information relates to a factory for the year:
Number of workers on 1 Jan = 1,000
Number of workers on 31 Dec = 1,200
Workers left during the year = 150
Workers discharged = 50
Workers recruited = 400
Of these, 200 were recruited to replace workers who left
Required:
Calculate labour turnover using:
1. Separation method
2. Replacement method
3. Flux method
Problem -4
Under Halsey Incentive and Rowan Plan:
 Standard time = 20 hours
 Actual time taken = 14 hours
 Hourly wage rate = ₹80
 Bonus = 50% of time saved
Required to Calculate total earnings of the worker
Problem 5
Strongman Ltd has three production departments A, B and C and two service
departments X and Y . Following particulars are available for the month of March ,
2010 concerning the organization :
Rs.
Rent 15,000
Municipal Taxes 5,000
Electricity 2,400
Indirect wages 6,000
Power 6,000
Depreciation on machinery 40,000
Canteen expenses 30,000
Other labour related costs 10,000

Following further details are also available :


Total A B C X Y
Floor space ([Link]) 5,000 1,000 1,250 1,500 1,000 250
Light points (nos) 240 40 60 80 40 20
Direct wages (Rs.) 40,000 12,000 8,000 12,000 6,000 2,000
Horse power of machines 150 60 30 50 10 -
(nos) 2,00,00 48,000 64,000 80,000 4,000 4000
Cost of machines (Rs.) 0 2335 1510 1525
Working hours
The expenses of service departments are to be allocated in the following
manner :
A B C X Y
X 20% 30% 40% - 10%
Y 40% 20% 30% 10% -
You are requested to calculate the overhead absorption rate per hour in respect
of the three production departments .
[Link].6. Explain the objectives and Procedures for Job order cost system.
Problem 7
For Job No. 205, the following information is given:
 Direct materials = ₹15,000
 Direct labour = ₹10,000
 Factory overheads = 60% of direct labour
 Administrative overheads = 20% of works cost
The company wants 25% profit on total cost.
Required:
Calculate the selling price of the job.
Problem 8
A factory produces a component with the following details:
 Annual demand = 12,000 units
 Set-up cost per batch = ₹60
 Carrying cost per unit per year = ₹3
Required:
1. Calculate the Economic Batch Quantity (EBQ).
2. Calculate the number of batches per year.

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