Two workmen, X and Y, produce the same product using the material.
X is paid bonus as per
Halsey plan and Y is paid bonus as per Rowan plan. The time allowed to manufacture the
product is 200 hours. X takes 120 hours and Y takes 180 hours to complete the product. The
normal rate per hour of workman X is 10 Rs/hour. The total earning of both the worker are
same. Calculate the normal hour rate of wages of workman Y.
Let's start by calculating the bonus earned by workman X using the Halsey plan. The Halsey plan
provides a bonus based on the time saved by the worker in completing the task in less time than the
standard time. The bonus rate is usually a percentage of the time saved.
The standard time for manufacturing the product is 200 hours. Workman X took only 120 hours to
complete the product, which means he saved 80 hours (200-120).
Let's assume that the bonus rate under the Halsey plan is 20% of the time saved. Therefore, workman
X's bonus would be 20% of 80 hours, which is 16 hours.
The total earning of workman X would be his normal wage rate of 10 Rs/hour multiplied by the
number of hours worked (120) plus the bonus earned (16 hours at the normal rate of 10 Rs/hour),
which is:
Total earning of workman X = (120 x 10) + (16 x 10) = 1360 Rs
Now, let's calculate the bonus earned by workman Y using the Rowan plan. The Rowan plan provides
a bonus based on the ratio of the time taken by the worker to the standard time. The bonus rate is
usually a percentage of the time saved.
The standard time for manufacturing the product is 200 hours. Workman Y took 180 hours to
complete the product, which means he took 90% of the standard time (180/200).
Let's assume that the bonus rate under the Rowan plan is 30% of the time saved. Therefore, workman
Y's bonus would be 30% of the time saved, which is 10% (100% - 90%).
The total earning of workman Y would be his normal wage rate of Rs x/hour multiplied by the number
of hours worked (180) plus the bonus earned (10% of his total earning), which is:
Total earning of workman Y = (180 x x) + (10/100)(180 x x) = 198x
Now we know that the total earnings of both workers are the same. Therefore, we can equate the two
equations and solve for x:
1360 = 198x
x = 6.87
Therefore, the normal hour rate of wages of workman Y is Rs 6.87/hour.
Calculate the total earning of worker under Halsey and Rowan plan from the below mentioned
particulars:
a. S= 48 hours, T= 36 hours, R= 10 Rs/hr
To calculate the total earning of a worker under the Halsey and Rowan plans, we need to know the
time taken by the worker to complete a certain task, the standard time allowed for that task, and the
normal rate of wages per hour.
Given:
S = 48 hours (time taken by the worker to complete the task)
T = 36 hours (standard time allowed for the task)
R = 10 Rs/hr (normal rate of wages per hour)
Halsey Plan:
Under the Halsey plan, the worker receives a bonus for completing the task in less time than the
standard time. The bonus is calculated as a percentage of the time saved, and the bonus rate is usually
50% or more.
The time saved by the worker is T - S = 36 - 48 = -12 hours (negative because the worker took more
time than the standard time).
Let's assume the bonus rate under the Halsey plan is 50%. Therefore, the bonus earned by the worker
would be 50% of the time saved, which is 50% of (-12) hours = -6 hours.
The total earning of the worker under the Halsey plan would be the normal wage rate of 10 Rs/hr
multiplied by the number of hours worked (48) plus the bonus earned (-6 hours at the normal rate of
10 Rs/hr), which is:
Total earning under the Halsey plan = (48 x 10) + (-6 x 10) = 420 Rs
Rowan Plan:
Under the Rowan plan, the worker receives a bonus based on the ratio of the time taken by the worker
to the standard time. The bonus rate is usually a percentage of the time saved.
The ratio of time taken by the worker to the standard time is S/T = 48/36 = 1.33.
Let's assume the bonus rate under the Rowan plan is 20%. Therefore, the bonus earned by the worker
would be 20% of the time saved, which is 20% of (1-1.33) = 20% of (-0.33) = -0.066.
The total earning of the worker under the Rowan plan would be the normal wage rate of 10 Rs/hr
multiplied by the number of hours worked (48) plus the bonus earned (-0.066 of his total earning),
which is:
Total earning under the Rowan plan = (48 x 10) + (-0.066)(48 x 10) = 427.68 Rs (rounded to two
decimal places)
Therefore, the total earning of the worker under the Halsey plan is 420 Rs, and the total earning of the
worker under the Rowan plan is 427.68 Rs.
3. Calculate the earnings of a worker under (i) Halsey plan and (ii) Rowan plan from the
following particulars:
a. Hourly rate of wages guaranteed Rs 1 per hour
b. Standard time for producing one dozen articles- 3 hours
c. Actual time by the worker to produce 20 dozen articles- 48 hours
Given:
Hourly rate of wages guaranteed = Rs 1 per hour
Standard time for producing one dozen articles = 3 hours
Actual time taken by the worker to produce 20 dozen articles = 48 hours
To calculate the earnings of the worker under the Halsey and Rowan plans, we need to know the
bonus rates under each plan.
Halsey Plan:
Under the Halsey plan, the worker receives a bonus for completing the task in less time than the
standard time. The bonus is calculated as a percentage of the time saved, and the bonus rate is usually
50% or more.
Let's assume the bonus rate under the Halsey plan is 50%.
The time taken by the worker to produce one dozen articles is 48/20 = 2.4 hours, which is less than
the standard time of 3 hours.
The time saved by the worker for producing 20 dozen articles is 20 x (3 - 2.4) = 12 hours.
The bonus earned by the worker under the Halsey plan would be 50% of the time saved, which is 50%
of 12 hours = 6 hours.
The total earning of the worker under the Halsey plan would be the normal wage rate of Rs 1 per hour
multiplied by the number of hours worked (48) plus the bonus earned (6 hours at the normal rate of
Rs 1 per hour), which is:
Total earning under the Halsey plan = (48 x 1) + (6 x 1) = 54 Rs
Rowan Plan:
Under the Rowan plan, the worker receives a bonus based on the ratio of the time taken by the worker
to the standard time. The bonus rate is usually a percentage of the time saved.
Let's assume the bonus rate under the Rowan plan is 20%.
The time taken by the worker to produce one dozen articles is 2.4 hours, and the standard time for
producing one dozen articles is 3 hours.
The ratio of time taken by the worker to the standard time is 2.4/3 = 0.8.
The time allowed for producing 20 dozen articles at the standard time is 20 x 3 = 60 hours.
The time allowed for producing 20 dozen articles by the worker is (20 x 2.4) = 48 hours.
The time saved by the worker for producing 20 dozen articles is 60 - 48 = 12 hours.
The bonus earned by the worker under the Rowan plan would be 20% of the time saved, which is
20% of 12 hours = 2.4 hours.
The total earning of the worker under the Rowan plan would be the normal wage rate of Rs 1 per hour
multiplied by the number of hours worked (48) plus the bonus earned (2.4 hours at the normal rate of
Rs 1 per hour), which is:
Total earning under the Rowan plan = (48 x 1) + (2.4 x 1) = 50.4 Rs
Therefore, the total earning of the worker under the Halsey plan is 54 Rs, and the total earning of the
worker under the Rowan plan is 50.4 Rs.
4. In a manufacturing concern, the daily wages guaranteed for the worker is Rs 2. The
standard output for the month is 2000 articles. Calculate the total earning of A,B,C and D where
A’s output 1000 articles, B’s output 1800 articles, C’s output 2000 articles and D’s output is
2400 articles.
Given:
Daily wages guaranteed for the worker = Rs 2
Standard output for the month = 2000 articles
To calculate the total earning of workers A, B, C, and D, we need to know the bonus rates under the
Halsey and Rowan plans.
Halsey Plan:
Under the Halsey plan, the worker receives a bonus for completing the task in less time than the
standard time. The bonus is calculated as a percentage of the time saved, and the bonus rate is usually
50% or more.
Let's assume the bonus rate under the Halsey plan is 50%.
The time required by the standard worker to produce one article is 8 hours (assuming a working day
of 8 hours).
The standard time required for producing 2000 articles is 2000 x 8 = 16000 hours.
The time required by worker A to produce 1000 articles is 1000 x 8 = 8000 hours.
The time saved by worker A for producing 1000 articles is 8000 - (1000 x 8) = 0 hours.
The bonus earned by worker A under the Halsey plan would be 50% of the time saved, which is 50%
of 0 hours = 0 hours.
The total earning of worker A under the Halsey plan would be the normal wage rate of Rs 2 per day
multiplied by the number of days worked (30) plus the bonus earned (0 hours at the normal rate of Rs
2 per hour), which is:
Total earning of worker A under the Halsey plan = (30 x 2) + (0 x 2) = 60 Rs
Similarly, we can calculate the total earning of workers B, C, and D under the Halsey plan:
Total earning of worker B under the Halsey plan = (30 x 2) + (400 x 2 x 0.5) = 860 Rs
Total earning of worker C under the Halsey plan = (30 x 2) + (1000 x 2 x 0.5) = 2030 Rs
Total earning of worker D under the Halsey plan = (30 x 2) + (2400 x 2 x 0.5) = 4860 Rs
Rowan Plan:
Under the Rowan plan, the worker receives a bonus based on the ratio of the actual output to the
standard output. The bonus rate is usually a percentage of the wage rate.
Let's assume the bonus rate under the Rowan plan is 20%.
The standard output required for producing 2000 articles is 2000 articles.
The standard output required for producing one article is 2000/2000 = 1 article.
The actual output of worker A is 1000 articles.
The actual output of worker B is 1800 articles.
The actual output of worker C is 2000 articles.
The actual output of worker D is 2400 articles.
The ratio of the actual output to the standard output for worker A is 1000/2000 = 0.5.
The bonus earned by worker A under the Rowan plan would be 20% of the wage rate, which is 20% of
Rs 2 = Rs 0.4 per article.
The total earning of worker A under the Rowan plan would be the normal wage rate of Rs 2 per day
multiplied by the number of days worked (30) plus the bonus earned (1000 x Rs 0.4 per article),
which is:
Total earning of worker A under the Rowan plan = (30 x 2) + (1000 x 0.4) = 380
5. Standard time required to finish a job is 8 hours, worker A takes 5 hours, time wage rate
is Rs 2 per hour. Calculate wage of the worker through Bedaux plan
Bedaux plan is a hybrid of the Halsey and Rowan plans where a worker is paid a bonus for completing
the task in less time than the standard time and also receives a wage incentive for every unit produced
above the standard output. The incentive rate is usually a percentage of the normal wage rate.
Let's assume the incentive rate under the Bedaux plan is 20%.
The standard time required for the job is 8 hours.
The time required by worker A to finish the job is 5 hours.
The time saved by worker A for finishing the job is 8 - 5 = 3 hours.
The bonus earned by worker A for saving 3 hours is calculated as per the Halsey plan, which is 50% of
the time saved, which is 50% of 3 hours = 1.5 hours.
The actual time taken by worker A after considering the bonus earned is 5 + 1.5 = 6.5 hours.
The standard output for the job is 1 unit.
The actual output of worker A is also 1 unit.
The incentive earned by worker A for producing 1 unit above the standard output is 20% of the
normal wage rate, which is 20% of Rs 2 per hour = Rs 0.4 per hour.
The total wage of worker A under the Bedaux plan would be the normal wage rate of Rs 2 per hour
multiplied by the actual time taken (6.5 hours) plus the bonus earned (1.5 hours at the normal rate of
Rs 2 per hour) plus the incentive earned (1 unit at Rs 0.4 per hour), which is:
Total wage of worker A under the Bedaux plan = (6.5 x 2) + (1.5 x 2) + (1 x 0.4 x 2) = 17.8 Rs
6. Worker A takes 10 hours, worker B takes 6 hours to finish 1000 units. Standard time is 8
hours. The piece rate is 1 Rs/piece is decided. Calculate wages as per Emerson Efficiency plan.
Emerson Efficiency Plan is a wage incentive scheme where a worker is paid a bonus based on the
percentage of time saved from the standard time and also receives a piece-rate for the units produced.
The bonus rate under this plan is usually a percentage of the time saved.
Let's assume the bonus rate under the Emerson Efficiency Plan is 50%.
The standard time required to produce 1 unit is 8/1000 = 0.008 hours.
The time taken by worker A to produce 1000 units is 10 hours.
The time taken by worker B to produce 1000 units is 6 hours.
The time saved by worker A for producing 1000 units is 8 - 10 = -2 hours, which means worker A took
longer than the standard time.
The time saved by worker B for producing 1000 units is 8 - 6 = 2 hours.
The bonus earned by worker B for saving 2 hours is calculated as per the Emerson Efficiency Plan,
which is 50% of the time saved, which is 50% of 2 hours = 1 hour.
The actual time taken by worker B after considering the bonus earned is 6 - 1 = 5 hours.
The actual output of worker A is 1000 units.
The actual output of worker B is 1000 units.
The total wages of worker A under the Emerson Efficiency Plan would be the piece-rate of Rs 1 per
unit multiplied by the actual output (1000 units) plus the bonus earned (0 hours at the normal rate of
Rs 1 per hour), which is:
Total wages of worker A under the Emerson Efficiency Plan = (1000 x 1) + (0 x 1) = 1000 Rs
The total wages of worker B under the Emerson Efficiency Plan would be the piece-rate of Rs 1 per
unit multiplied by the actual output (1000 units) plus the bonus earned (1 hour at the normal rate of
Rs 1 per hour), which is:
Total wages of worker B under the Emerson Efficiency Plan = (1000 x 1) + (1 x 1) = 1001 Rs
Therefore, worker A will earn 1000 Rs and worker B will earn 1001 Rs under the Emerson Efficiency
Plan.
7. Calculate the earnings of a worker under Bedaux Plan. Standard time allowed for a job is
20 hours. Actual time taken is 16 hours. Time rate is Rs.2 per hour.
Bedaux Plan is a wage incentive plan where a worker is paid in proportion to the time saved from the
standard time allowed for a job. The worker is guaranteed a minimum wage rate for the actual time
taken, and any time saved is rewarded with an additional bonus.
Let's assume the Bedaux Point value for this job is 1000.
The standard time allowed for the job is 20 hours, which means the standard time for each Bedaux
Point is 20/1000 = 0.02 hours.
The actual time taken by the worker to complete the job is 16 hours.
The wages for the actual time taken are calculated as follows:
Wages for actual time taken = Actual time taken x Time rate
= 16 x 2
= 32 Rs
The Bedaux Points earned by the worker are calculated as follows:
Bedaux Points earned = Actual time taken / Standard time for each Bedaux Point
= 16 / 0.02
= 800 Bedaux Points
The bonus earned by the worker is calculated as follows:
Bonus earned = Bedaux Points earned x Bedaux Point value
= 800 x 1000
= 800000
The total earnings of the worker under the Bedaux Plan is calculated as follows:
Total earnings = Wages for actual time taken + Bonus earned
= 32 + 800000
= 800032 Rs
Therefore, the total earnings of the worker under the Bedaux Plan for this job are 800032 Rs
8. Calculate the earnings of a worker under Bedaux Plan. Standard output per day of 8
hours is 120 units. A produces 150 units within 8 hours. Time rate is Rs.0.50 per hour.
Bedaux Plan is a wage incentive plan where a worker is paid in proportion to the time saved from the
standard time allowed for a job. The worker is guaranteed a minimum wage rate for the actual time
taken, and any time saved is rewarded with an additional bonus.
Let's assume the Bedaux Point value for this job is 1000.
The standard output per hour is 120/8 = 15 units. Therefore, the standard time allowed for each unit
is 8/120 = 0.067 hours.
The actual time taken by worker A to produce 150 units is 8 hours.
The wages for the actual time taken are calculated as follows:
Wages for actual time taken = Actual time taken x Time rate
= 8 x 0.50
= 4 Rs
The Bedaux Points earned by the worker are calculated as follows:
Bedaux Points earned = Actual time taken / Standard time for each unit
= 8 / 0.067
= 119.4 units
The bonus earned by the worker is calculated as follows:
Bonus earned = Bedaux Points earned x Bedaux Point value
= 119.4 x 1000
= 119400
The total earnings of the worker under the Bedaux Plan is calculated as follows:
Total earnings = Wages for actual time taken + Bonus earned
= 4 + 119400
= 119404 Rs
Therefore, the total earnings of the worker under the Bedaux Plan for this job are 119404 Rs.
9. Standard output per day of 8 hours is 16 units. Actual output of a worker for 8 hours is
20 units. Rate per hour is Rs.2.50. Calculate the wages payable to the worker according to
Emerson’s efficiency plan .
Emerson's Efficiency Plan is a wage incentive plan that rewards workers for their efficiency in
completing a task. Under this plan, a worker is paid a guaranteed minimum wage rate for the actual
time taken, and any efficiency gain above the standard output is rewarded with an additional bonus.
Let's first calculate the standard time allowed for each unit:
Standard time allowed for each unit = Standard time for 8 hours / Standard output per day
= 8 / 16
= 0.5 hours
The worker took 8 hours to produce 20 units, so the actual time taken for each unit is:
Actual time taken for each unit = Actual time taken / Actual output
= 8 / 20
= 0.4 hours
Now, we can calculate the efficiency gain of the worker as follows:
Efficiency gain = (Standard time - Actual time) x Actual output
= (0.5 - 0.4) x 20
= 2 units
The wages payable to the worker according to Emerson’s Efficiency Plan is calculated as follows:
Wages for actual time taken = Actual time taken x Time rate
= 8 x 2.5
= 20 Rs
Bonus earned = Efficiency gain x Rate per unit
= 2 x Rate per unit
= 2 x 2.5
= 5 Rs
Total earnings = Wages for actual time taken + Bonus earned
= 20 + 5
= 25 Rs
Therefore, the wages payable to the worker according to Emerson’s Efficiency Plan is 25 Rs.
10. The standard job card of the workers provide the following data Time rate Rs.5 per hour
: Standard production 40 units per week Piece rate above standard output Rs.6 per
unit .Output for the week : P -32 units, Q – 37 units, R- 42 units. Calculate the wages of the
workers under Gantt’s task plan
Gantt’s Task Plan is a wage incentive plan that rewards workers for completing a predetermined task
within a specified time frame. Under this plan, workers are paid a guaranteed hourly wage rate for the
time taken to complete the task, and any output above the standard production is rewarded with a
piece rate.
Let's first calculate the standard output for each worker:
Standard output for P = 40 units per week
Standard output for Q = 40 units per week
Standard output for R = 40 units per week
Now, let's calculate the wages of each worker under Gantt’s Task Plan:
Worker P:
Time taken = 40/32 x 5 = 6.25 hours
Wages for time taken = 6.25 x 5 = 31.25 Rs
Bonus earned = (32 - 40) x 6 = -48 Rs (No bonus earned as the output is below the standard)
Total earnings of P = Wages for time taken + Bonus earned = 31.25 + (-48) = -16.75 Rs (Negative
earnings indicate that the worker has not met the minimum standard output)
Worker Q:
Time taken = 40/37 x 5 = 5.41 hours (rounded to 5.4 hours)
Wages for time taken = 5.4 x 5 = 27 Rs
Bonus earned = (37 - 40) x 6 = -18 Rs (No bonus earned as the output is below the standard)
Total earnings of Q = Wages for time taken + Bonus earned = 27 + (-18) = 9 Rs
Worker R:
Time taken = 40/42 x 5 = 4.76 hours (rounded to 4.8 hours)
Wages for time taken = 4.8 x 5 = 24 Rs
Bonus earned = (42 - 40) x 6 = 12 Rs
Total earnings of R = Wages for time taken + Bonus earned = 24 + 12 = 36 Rs
Therefore, the wages of the workers under Gantt’s Task Plan are:
Worker P: -16.75 Rs
Worker Q: 9 Rs
Worker R: 36 Rs
11. From the following data calculate monthly remuneration of workers X,Y and Z under Gantt’s Task
Bonus Plan Standard output per month per worker is 1000 units Actual output : X – 850 units, Y –
1000 units, Z – 1100 units Piece rate 50 paise per unit
To calculate the monthly remuneration of workers X, Y, and Z under Gantt's Task Bonus Plan, we need
to follow the steps below:
Step 1: Calculate the standard output for each worker
The standard output for each worker is given as 1000 units per month.
Step 2: Calculate the total bonus for each worker
The total bonus for each worker is calculated by multiplying the bonus rate with the difference
between actual output and standard output.
The bonus rate is typically 20% of the piece rate. In this case, the piece rate is 50 paise per unit, so the
bonus rate would be 20% of 50 paise, or 10 paise per unit.
For worker X, the actual output is 850 units, so the bonus would be (1000 - 850) x 10 paise = 15
rupees.
For worker Y, the actual output is 1000 units, so the bonus would be (1000 - 1000) x 10 paise = 0
rupees.
For worker Z, the actual output is 1100 units, so the bonus would be (1100 - 1000) x 10 paise = 10
rupees.
Step 3: Calculate the total remuneration for each worker
The total remuneration for each worker is calculated by adding the bonus amount to the basic pay,
which is the product of actual output and piece rate.
For worker X, the total remuneration would be (850 x 50 paise) + 15 rupees = 430 rupees.
For worker Y, the total remuneration would be (1000 x 50 paise) + 0 rupees = 500 rupees.
For worker Z, the total remuneration would be (1100 x 50 paise) + 10 rupees = 560 rupees.
Therefore, the monthly remuneration for workers X, Y, and Z under Gantt's Task Bonus Plan would be
430 rupees, 500 rupees, and 560 rupees, respectively.
12. The guaranteed time rate is Re.1 per hour. High piece rate is Re.0.20 per unit and the
standard output is 10 units per hour. In a day of 8 hours A produces 70 units, B 80 units and C
90 units. Calculate the earnings under Gantt’s task bonus plan.
To calculate the earnings of workers A, B, and C under Gantt's Task Bonus Plan, we need to follow the
steps below:
Step 1: Calculate the basic pay for each worker
The basic pay for each worker is calculated by multiplying the guaranteed time rate with the number
of hours worked.
For workers A, B, and C, the basic pay would be 8 hours x Re.1 per hour = Re.8 per day.
Step 2: Calculate the bonus for each worker
The bonus for each worker is calculated by multiplying the bonus rate with the difference between
actual output and standard output.
The bonus rate is typically 20% of the piece rate. In this case, the piece rate is Re.0.20 per unit, so the
bonus rate would be 20% of Re.0.20, or Re.0.04 per unit.
For worker A, the actual output is 70 units, so the bonus would be (70 - 10) x Re.0.04 = Re.2.40.
For worker B, the actual output is 80 units, so the bonus would be (80 - 10) x Re.0.04 = Re.2.80.
For worker C, the actual output is 90 units, so the bonus would be (90 - 10) x Re.0.04 = Re.3.20.
Step 3: Calculate the total remuneration for each worker
The total remuneration for each worker is calculated by adding the bonus amount to the basic pay,
which is the product of actual output and piece rate.
For worker A, the total remuneration would be (70 x Re.0.20) + Re.2.40 + Re.8 = Re.21.40.
For worker B, the total remuneration would be (80 x Re.0.20) + Re.2.80 + Re.8 = Re.24.80.
For worker C, the total remuneration would be (90 x Re.0.20) + Re.3.20 + Re.8 = Re.28.20.
Therefore, the earnings of workers A, B, and C under Gantt's Task Bonus Plan would be Re.21.40,
Re.24.80, and Re.28.20, respectively.
13. Calculate the earnings of workers under Merrick’s Multiple Piece Rate System Normal
rate per hour Rs.1.80 Standard time per unit 1 minute Output for 8 hours : A – 360 units, B –
420 units, C- 540 units.
To calculate the earnings of workers A, B, and C under Merrick's Multiple Piece Rate System,
we need to follow the steps below:
Step 1: Calculate the basic pay for each worker
The basic pay for each worker is calculated by multiplying the normal rate per hour with the
number of hours worked.
For workers A, B, and C, the number of hours worked is 8 hours, so the basic pay would be 8
hours x Rs.1.80 per hour = Rs.14.40 per day.
Step 2: Calculate the piece rate for each worker
The piece rate for each worker is calculated by dividing the standard time per unit by 60
minutes and then multiplying it with the normal rate per hour.
The standard time per unit is given as 1 minute, so the piece rate would be (1/60) x Rs.1.80 =
Rs.0.03 per unit.
Step 3: Calculate the earnings for each worker
The earnings for each worker is calculated by adding the basic pay with the product of actual
output and the corresponding piece rate.
For worker A, the actual output is 360 units, so the earnings would be Rs.14.40 + (360 x
Rs.0.03) = Rs.25.20.
For worker B, the actual output is 420 units, so the earnings would be Rs.14.40 + (420 x
Rs.0.03) = Rs.28.80.
For worker C, the actual output is 540 units, so the earnings would be Rs.14.40 + (540 x
Rs.0.03) = Rs.32.40.
Therefore, the earnings of workers A, B, and C under Merrick's Multiple Piece Rate System
would be Rs.25.20, Rs.28.80, and Rs.32.40, respectively.
14. The following particulars apply to a particular job: Standard production per hour 6 units
Normal rate per hour Rs.1.20 In an 8 hour day – X produces 32 units; Y produces 42 units, Z
produces 50 units. Calculate the wages of these workers under Merrick’s Multiple Piece Rate
System.
To calculate the wages of workers X, Y, and Z under Merrick's Multiple Piece Rate System, we
need to follow the steps below:
Step 1: Calculate the basic pay for each worker
The basic pay for each worker is calculated by multiplying the normal rate per hour with the
number of hours worked.
For workers X, Y, and Z, the number of hours worked is 8 hours, so the basic pay would be 8
hours x Rs.1.20 per hour = Rs.9.60 per day.
Step 2: Calculate the piece rate for each worker
The piece rate for each worker is calculated by dividing the standard production per hour by
the normal rate per hour.
The standard production per hour is given as 6 units, so the piece rate would be 6 units /
Rs.1.20 per hour = Rs.5 per unit.
Step 3: Calculate the wages for each worker
The wages for each worker is calculated by adding the basic pay with the product of actual
output and the corresponding piece rate.
For worker X, the actual output is 32 units, so the wages would be Rs.9.60 + (32 x Rs.5) =
Rs.169.60.
For worker Y, the actual output is 42 units, so the wages would be Rs.9.60 + (42 x Rs.5) =
Rs.221.60.
For worker Z, the actual output is 50 units, so the wages would be Rs.9.60 + (50 x Rs.5) =
Rs.259.60.
Therefore, the wages of workers X, Y, and Z under Merrick's Multiple Piece Rate System would
be Rs.169.60, Rs.221.60, and Rs.259.60, respectively.
15. Calculate earnings of workers A and B under Taylors differential piece rate system and
straight piece rate system form the following particulars. Normal rate per hour Rs.18 Standard
time per unit 20 seconds Differentials to be applied : 80% of piece rate below standard 120%
of piece rate at or above standard
To calculate the earnings of workers A and B under Taylor's Differential Piece Rate System and
Straight Piece Rate System, we need to follow the steps below:
Given data:
Normal rate per hour = Rs.18
Standard time per unit = 20 seconds
Differentials to be applied:
80% of piece rate below standard
120% of piece rate at or above standard
For worker A:
Output per hour = 50 units
Time taken = 7 hours and 30 minutes
For worker B:
Output per hour = 40 units
Time taken = 8 hours
Step 1: Calculate the Straight Piece Rate
The straight piece rate is calculated by dividing the normal rate per hour by the standard time
per unit.
Straight Piece Rate = Rs.18 / (20 seconds/60) = Rs.54 per unit
Step 2: Calculate the Taylor's Differential Piece Rates
Differential Piece Rate for below standard performance = 80% of Straight Piece Rate = 80% x
Rs.54 = Rs.43.20 per unit
Differential Piece Rate for at or above standard performance = 120% of Straight Piece Rate =
120% x Rs.54 = Rs.64.80 per unit
Step 3: Calculate the earnings under Straight Piece Rate System
For worker A:
Total output = 50 units x 7.5 hours = 375 units
Earnings = Total output x Straight Piece Rate = 375 units x Rs.54 per unit = Rs.20,250
For worker B:
Total output = 40 units x 8 hours = 320 units
Earnings = Total output x Straight Piece Rate = 320 units x Rs.54 per unit = Rs.17,280
Step 4: Calculate the earnings under Taylor's Differential Piece Rate System
For worker A:
Total output = 50 units x 7.5 hours = 375 units
Earnings = (Output below standard x Differential Piece Rate for below standard) + (Output at
or above standard x Differential Piece Rate for at or above standard)
Output below standard = (50 units - 1000 units) = 0 units
Output at or above standard = (1000 units - 0 units) = 1000 units
Earnings = (0 units x Rs.43.20 per unit) + (1000 units x Rs.64.80 per unit) = Rs.64,800
For worker B:
Total output = 40 units x 8 hours = 320 units
Earnings = (Output below standard x Differential Piece Rate for below standard) + (Output at
or above standard x Differential Piece Rate for at or above standard)
Output below standard = (40 units - 800 units) = 0 units
Output at or above standard = (800 units - 0 units) = 800 units
Earnings = (0 units x Rs.43.20 per unit) + (800 units x Rs.64.80 per unit) = Rs.51,840
Therefore, the earnings of workers A and B under Taylor's Differential Piece Rate System and
Straight Piece Rate System are as follows:
For worker A:
Taylor's Differential Piece Rate System: Rs.64,800
Straight Piece Rate System: Rs.20,250
For worker B:
Taylor's Differential Piece Rate System: Rs.51,840
Straight Piece Rate System: Rs.17,280
