Accounting for Labour BQ-3. You are provided the following information.

NUMERICAL QUESTIONS Wage rate ................................... Rs. 15 per hour

Time required per unit ............... 3 hours
Output of Hari ........................... 40 units
Brief Answer Questions: Output of Ram............................30 units
BQ-1. ____ You are provided the following information: Required: Total wages payable to Hari and Ram by using time
Standard wages rate per hours ....................... Rs. 15 rate system of wages payment
Solution:
Standard time allowed...................................... 1800 hours
Total wages= Actual time taken × wage rate per hr
Actual time allowed ......................................... 1500 hours
Required: Total wages under time rate wages payment system. Hari
1 unit = 3 hrs
Solution:
Total wages = Actual time taken × wage rate per hr 40 units = (3 × 40) hrs = 120 hrs
Total wages= Actual time taken × wage rate per hr
= 1500hrs × Rs 15 = Rs 22,500
= 120 hrs × Rs 15 = Rs 1800
BQ-2. ____ You are provided the following information: Ram
Wages rate per hour ............ Rs. 6 1 unit = 3 hrs
Standard time ...... ................36 minutes per unit 30 units = ( 3 × 30) hrs = 90 hrs
Production per worker Total wages= Actual time taken × wage rate per hr
Krishna.............. 60 units = 90 hrs × Rs 15 = Rs 1350
Bijay.................. 30 units
Required: Earning of Kirshna and Bijay by using piece rate
system
Total wages = No. of units produced × Rate per piece BQ-4. ____ A Manufacturing Company provided to you the
W/N following information:
1 unit = 36 min Standard time allowed......................... .....140 hours
1.6667 units = 60 min (Multiply by 1.6667) Actual time taken .................................... 105 hour
1.6667 units = 1 hr Standard wage rate per hour .................... Rs.50
Required: Total wages and effective rate under: a. Halsey's
1 hr = Rs 6 premium plan b. Rowan's premium plan
1 hr = 1.6667 units Solution
1.6667 units = Rs 6 Total wages under Halsey =
𝑅𝑠 6 1
1 unit = 1.6667 = Rs 3.60 = (Actual Time × Time Rate + 2 ( Time saved × Time rate)
Total wages = No. of units produced × Rate per piece Standerd Time−Actual Time
Krishna = 60 units × Rs 3.60 = Rs 216 = (AT×TR) + × TR
2
Bijay = 30 units × Rs 3.60 = Rs 108 Total wages under Rowan =
Actual time ×Time rate ×Time saved
= (AT × TR) + ( )
Time allowed or Standard time
BQ-5. ____ A Company provides you the following information: Wages of Mr. B = Std. output units × Normal piece rate
Normal piece rate........................................ Rs.4 = 300 units × Rs 4 = Rs 1200
Standard yield per day ......................... 300 units
Differentials to be applied: 80% of piece rate for below standard Wages of Mr. C = Actual output units × High piece rate
120% of piece rate at or above standard = 300 units × Rs 4 × 1.20= Rs 1440
Workers X Y Z
Wages of Mr. D = Actual output units × High piece rate
Actual output 100 300 500
Required: Calculate the total wages of the workers X, Y and Z = 400 units × Rs 4 × 1.20= Rs 1920
under Taylor's differential piece rate system Wages of Mr. E = Actual output units × High piece rate
Solution:
Total Earnings of Mr. X= Actual output x Low piece rate = 500 units × Rs 4 × 1.20= Rs 2400
=100x 0.80 × 4 = Rs. 320
Total Earnings of Mr. Y= Actual output x High piece rate Short Answer Questions:
=300x 1.20 × 4 = Rs. 1440 SQ-1. A worker produced 40 units of output in 80 hours. Standard
Total Earnings of Mr. Z= Actual output x High piece rate time allowed for 2 unit of output is 4 hours at a wage rate of Rs. 70
per hour.
=500x 1.20 × 4 = Rs. 2400
Required: Total wages under Hasley and Rowan plan
Solution:
BQ-6. ____ A Company provided to you the following information: Actual hour = 80 hours (Actual Time )
Standard yield/output per day ............................... 300 units Standard hour
Normal piece rate ................................................ Rs.4 2 unit = 4 hour
4
Actual yield per day of the following workers: 1 unit = 2 hour
Workers A B C D E 4
40 units = 2 × 40 = 80 hours
Actual output in units Nil 200 300 400 500
Required: Calculate the total wages of the workers A,B,C,D and E Time saved = 80 hours – 80 hours = 0
under: Gantt's Task and bonus plan Time rate = Rs 70
Solution: Total wages under Halsey =
Actual output A = Nil (below standard) 1
= (Actual Time × Time Rate) + 2 ( Time saved × Time rate)
Actual output B = 200 (below standard)
Standerd Time−Actual Time
Actual output C = 300 (equal standard) = (AT×TR) + × TR
2
Actual output D= 400 (above standard)
Actual output E= 500 (above standard) Total wages under Rowan =
Actual time ×Time rate ×Time saved
= (AT × TR) + ( )
Time allowed or Standard time
Wages of Mr. A = Std. output units × Normal piece rate
= 300 units × Rs 4 = Rs 1200
SQ-2. Following are the information given to you: SQ-4. A manufacturing company produced 140 units of output in
i 2,100 units of output were produced in 100 hours. ii. 0.5 direct 12 hours. Standard time allowed for 9 units of output is 1 hours at
labor hour is needed to produce 7 units of output. iii. Guaranteed wage rate of Rs. 15 per hour.
wage rate Rs. 18 per hour. Required: Total wages under Halsey and Rowan plan
Required: Calculate total earnings and effective rate under: a. Solution:
Halsey premium plan b. Rowan premium plan Standard hour = 9 unit = 1 hour
Solution: 1
1 unit = 9 hour
Standard hour = 7 unit = 0.5 hour 1
0.5 140 unit = 9 × 140 hour
1 unit = 7 hour
0.5 = 15.55 hours
2100 unit = 7 × 2100 hour Standard time (ST) = 15.55 hours
= 150 hours Actual Time (AT) = 12 hours (Time taken)
Standard time (ST) = 150 hours Time saved (TS) = 15.55 – 12 = 3.55 hours
Actual Time (AT) = 100 hours (Time taken) Time rate (TR) = Rs 15 per hour
Time saved (TS) = 150 – 100 = 50 hours
Time rate (TR) = Rs 18 per hour SQ-5. Bijay has taken 140 hour for completing a job. The rate of
Total wages under Halsey = wage per hour is Rs. 30. He got bonus Rs. 1480 under Rowan plan.
1 Required: a. Standard time allowed b. Total wages under Halsey
= (Actual Time × Time Rate + 2 ( Time saved × Time rate) c. Total wage under Rowan
Standerd Time−Actual Time Solution:
= (AT×TR) + × TR
2 Under Rowan plan
Actual time ×Time rate ×Time saved
Total wages under Rowan = Bonus = ( Time allowed or Standard time )
Actual time ×Time rate ×Time saved 140 ×30 ×(ST−140)
= (AT × TR) +( ) 1480 =
Time allowed or Standard time ST
ST = 216.17 hours
SQ-3. From the following information:
Standard Time....................... 2 hours per unit SQ-6. The standard time fixed for a job is 60 hours. The hourly rate
Time Taken ......................... 100 hours
of guaranteed wage is Rs.30. Sahila, a worker saved time and he
Wage Rate ......................... Rs. 400 per hour gets Rs. 1,500 under Halsey Premium Plan.
Actual output .........................60 units
Required: a. Actual time taken b. Time saved by the Sahila c.
You are required to determine under Halsey Premium Plan: Time Bonus under Halsey and Rowan d. Difference in total wages
saved by the worker Total wages earned by the work
between Halsey and Rowan
Solution: Solution:
Standard Time = 1 unit = 2 hours
2 Standard Time (ST) = 60 hours
= 60 units = 1 × 60 Time rate (TR) = Rs 30
= 120 hours Total wages under Halsey = Rs 1,500
Actual time taken (AT) = ?
Total wages under Halsey = SQ-8. Following information are supplied to you:
1 Guaranteed wage rate per hour is........................... Rs.30
= (Actual Time × Time Rate + 2 ( Time saved × Time rate) Wage rate per hour under Halsey premium plan ... Rs.40
Standerd Time−Actual Time Standard time allowed for the job ................... 160 hours
= (AT×TR) + × TR
2 Required: Total earnings under Halsey and Rowan plan
60 −AT Solution:
Rs 1,500 = (AT×30) + × 30
2 Time Rate (TR) = Rs 30
AT= 40 hours Effective wage rate under Halsey = Rs 40
Standard Time (ST) = 160 hours
SQ-7. Take home pay proposed under Rowan plan to a worker 𝑇𝑜𝑡𝑎𝑙 𝑤𝑎𝑔𝑒𝑠 𝑢𝑛𝑑𝑒𝑟 𝐻𝑎𝑙𝑠𝑒𝑦
Effective wage rate under Halsey =
(who is in 20% tax bracket) was Rs. 1,680. The pay was determined 𝐴𝑐𝑡𝑢𝑎𝑙 𝑡𝑖𝑚𝑒 𝑡𝑎𝑘𝑒𝑛
𝑇𝑜𝑡𝑎𝑙 𝑤𝑎𝑔𝑒𝑠 𝑢𝑛𝑑𝑒𝑟 𝐻𝑎𝑙𝑠𝑒𝑦
at guaranteed wages rate of Rs. 30 per hour. The actual time taken Rs 40 = 𝐴𝑇
by the worker for the job was 60 hours. Total wages under Halsey = 40AT ………….(1)
Required: a. Bonus under Rowan premium plan b. Total wages Again,
under Halsey Total wages under Halsey =
Solution: 1
80% ______Rs 1680 = (Actual Time × Time Rate + 2 ( Time saved × Time rate)
100% ? ST−AT
100 = (AT×TR) +( × TR)
1680 × 80 = Rs 2100 2
160−AT
Total wages under Rowan = Basic wages + Bonus 40TT = (AT×30) +( 2 × 30)
Rs 2100 = (AT × TR) + Bonus AT = 96 hours
Rs 2100 = (60 × 30) + Bonus Putting the value in equation (1)
Bonus = Rs 300 Total wages under Halsey = Rs 40AT
= 40 × 96 = Rs Rs 3,840
Actual Time ×Time rate ×Time saved
Bonus = ( ) SQ-9. Calculate the total earnings of workers. A B and C and
Time allowed or Standard time
60 ×30 ×(ST−60) under; Taylor' differential piece rate system from the following
Rs 300 = ( )
ST particulars:
ST = 72 hours Normal price rate ............................................. Rs. 8
Total wages under Halsey = Standard yield/output per month .................... 600 units
1 Differentials to be applied: 80% of piece rate for below standard
= (Actual Time × Time Rate + 2 ( Time saved × Time rate)
120% of piece rate at or above standard Actual yield/output per
ST−AT
= (AT×TR) +( ) × TR month:
2
A .................... 500 units
B.................... 600 units
C......................700 units
Solution: C= 20 units = 1 hour
Standard output = 600 units 1
1 unit = 20 hour
Actual output A = 500 units (Below standard) 1
Actual output B = 600 units (At standard) 4000 units = × 4000 hour
20
Actual output C = 700 units (Above standard) = 200 hours
Total Earnings of A = Actual output x Low piece rate SQ-11. A Company provides you the following information:
Standard time allowed for eight units of output 20 minutes
=500 X 0.80× Rs 8 = Rs.3200
Guaranteed wage rate per hour ..................... Rs. 54
Total Earnings of B = Actual output × High piece rate Working Time per day .................................. 8 hours
= 600 × 1.20× Rs 8= Rs.5760 Differential to be applied: 83% of piece rate for below standard
125% of piece rate for at or above standard. Actual production per
Total Earnings of B = Actual output × High piece rate day working eight hours:
= 700 × 1.20× Rs 8= Rs.6760 Workers X Y
Actual output in units 190 220
SQ-10. Actual productions of the following workers in 100 hours Required: Total earnings of the workers under Taylor's
were as under: differential piece rate system
Workers A B C Solution:
Actual output in units 2,000 3,000 4,000 W/N
Standard time allowed for 20 unit of output is one hour at a Standard units
guaranteed wage rate of Rs.30 per hour 20 min. = 8 units
Required: Total wages under Halsey Premium Plan 60 min. = 24 units (Multiply by 3 on both sides)
1 hour = 24 units
Solution: 8 hour = (24 × 8) units
Actual Time (AT) = 100 hours = 192 units
Time Rate (TR) = Rs 30 Standard output = 192 units
Standard hours (ST) Actual output X = 190 units (Below standard)
A = 20 units = 1 hour Actual output Y = 220 units (Above standard)
1 𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑤𝑎𝑔𝑒 𝑟𝑎𝑡𝑒 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟 𝑅𝑠 54
1 unit = 20 hour Normal piece rate = 𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑜𝑢𝑡𝑝𝑢𝑡 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟 = 24 = Rs 2.25
1
2000 units = 20 × 2000 hour Total Earnings of X = Actual output x Low piece rate
= 100 hours =190 X 0.83× Rs 2.25 = Rs.354.825
Total Earnings of Y = Actual output × High piece rate
B= 20 units = 1 hour
1 = 220 × 1.25× Rs 2.25= Rs.618.75
1 unit = 20 hour
1
3000 units = 20 × 3000 hour
= 150 hours
SQ-12. From the following particulars calculate wages earned by SQ-13. Following are the information provided to you by a Nepal
workers X and Y respectively under Taylors's Differential Piece manufacturing company.
Rate System and Halsey Premium Plan: Working hours per day ....................... 8 hours
Standard time allowed ................... 12 units per hour Normal time rate.................................. Rs. 36 per hour
Normal wage rate ........................... Rs. 240 per hour Standard production.............................. 6 units per hour
Differential rates to be applied: 90% of piece rate when below Output of the workers:
standard efficiency 130% of piece rate when at or above standard Bijay ........................................... 50 units
production on a day of 8 hours X – 100 units Y – 150 units Krishna ....................................... 70 units
Solution: Suman ......................................... 62 units
Standard units Required: Total wages per day of the workers under Gantt's task
1 hour = 12 units and bonus system
8 hours = (12 × 8) units Solution:
= 96 units Standard output units
Standard output units = 96 units 1 hour = 6 units
Actual output X = 100 units (Above standard) 8 hour = (6 × 8) units
Actual output Y = 150 units (Above standard) = 48 units
Actual output Bijay = 50 units (Above standard)
𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑤𝑎𝑔𝑒 𝑟𝑎𝑡𝑒 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟 𝑅𝑠 240 Actual output Krishna = 70 units (Above standard)
Normal piece rate = = = Rs 20
𝑆𝑡𝑎𝑛𝑑𝑎𝑟𝑑 𝑜𝑢𝑡𝑝𝑢𝑡 𝑝𝑒𝑟 ℎ𝑜𝑢𝑟 12 Actual output Suman = 62 units (Above standard)
Total Earnings of X = Actual output x High piece rate Wages rate per hr 36
Normal Piece rate = = Rs. 6
=100 X 1.30× Rs 20 = Rs.2600 Standard output per hr 6
Total Earnings of Y = Actual output × High piece rate Now,
= 150 × 1.30× Rs 20= Rs.3900 Wages of Mr. Bijay = Actual output X High piece rate
Again under Halsey Plan: =50 × 1.20 × Rs 6= Rs. 360
Actual Time (AT) = 8 hour Wages of Mr. Krishna =(Actual output x High piece rate)
Time rate (TR) = Rs 240 = 70 × (1.20 × Rs 6)= Rs. 504
Standard Time (ST) Wages of Mr. Suman = (Actual output x High piece rate)
12 units = 1 hour = 62 × 1.20 × 6= Rs.446.40
1
1 unit = 12 hour
1
X= 100 units = × 100 = 8.33 hour
12
1
Y= 150 units = 12 × 150 = 12.5 hour
SQ-14. You are the provided the following information: COMPREHENSIVE ANSWER QUESTIONS:
Standard wage rate per hour ........................... Rs.36 CQ-1. A Krishna company provided the following information.
Standard time allowed per unit of output.........20 minutes Standard time allowed for the job .............. 40 hours
Working time per day ...................................... 10 hours Guaranteed wage rate per hour ................... Rs. 20
Actual output/yield per day of working 10 hours of the workers are Wage rate per hour under Halsey premium plan Rs. 30.25
as under: Required: a. Actual time taken b. Total wage earned by the
Workers A B C worker
Actual output in units 20 30 50 Solution:
Required: Total wages per day of the worker under Gantt's tasks 𝑇𝑜𝑡𝑎𝑙 𝑤𝑎𝑔𝑒𝑠
Effective wage rate = 𝐴𝑐𝑡𝑢𝑎𝑙 𝑡𝑖𝑚𝑒 𝑡𝑎𝑘𝑒𝑛
and bonus plan 𝑇𝑜𝑡𝑎𝑙 𝑤𝑎𝑔𝑒𝑠
Solution: Rs 30.25 = 𝐴𝑇
Standard unit Total wages = Rs 30.25 AT …………..(i)
20 min. = 1 unit Again,
60 min = 3 unit (Multiply by 3 on both sides) Total wages under Halsey =
1 hour = 3 unit 1
=(Actual Time × Time Rate + 2 ( Time saved × Time rate)
10 hour = (3 × 10) units
ST−AT
= 30 units = (AT×TR) +( ) × TR
2
Standard output = 30 units 40−AT
Actual output A = 20 units (Below standard) Rs 30.25 = (AT×20) +( ) × 20
2
Actual output B = 30 units (At standard)
TT = 19.75 hours
Actual output C = 50 units (Above standard)
Putting the value in equation (i)
Wages rate per hr 36
Normal Piece rate = = Rs. 12 Total wages = Rs 30.25 AT
Standard output per hr 3
Total wages = Rs 30.25 × 19.75
Total Earnings of A = Standard output × Normal piece rate Total wages = Rs 597.4375
=30 × 12 = Rs.360 CQ-2. During a week a worker manufactured 600 units of output,
working 48 hours. The guaranteed wage rate is Rs.5 per hour. The
Total Earnings of B = Actual output × High piece rate estimated time allowed to produce an unit of output is 5 minutes
= 30 × 1.20× Rs 12= Rs.432 and under the incentive scheme, the time allowed is increased by
20%.
Total Earnings of B = Actual output × High piece rate
Required: Calculate total weekly wages of the worker under: a.
= 50 × 1.20× Rs 12= Rs.720 Straight piece rate method b. Halsey premium plan c. Rowan
premium plan
Solution: Total wages under Rowan =
Actual time (AT) = 48 hours Actual time ×Time rate ×Time saved
= (AT × TR) + ( Time allowed or Standard time )
Standard rate (SR) = Rs 5 per hour AT ×80 ×(40−AT)
Standard time: Rs 96 AT = (AT × 80) + ( )
40
1 unit = 5 min. + 20% of 5 AT = 32 hours
1 unit = 6 min. b) Time saved by the workers = 40 – 32 = 8 hours
600 unit = (6 × 600) min. ST−AT
c) Wages under Halsey plan= (AT×TR) +( 2 ) × TR
3600
= 3000 min or = 60 hour 𝑇𝑜𝑡𝑎𝑙 𝑤𝑎𝑔𝑒𝑠
60 d) Effective wage rate under Halsey =
Alternatively, 𝐴𝑐𝑡𝑢𝑎𝑙 𝑡𝑖𝑚𝑒

1 unit = 5 min. + 20% of 5

CQ-4. A Company has guaranteed wage rate is Rs. 1000 per hour.
1 unit = 6 min.
The standard time to finish the work is 80 hours and he is paid Rs.
10 unit = 60 min.
1200 as effective wage rate under Rowan Premium Plan.
10 unit = 1 hour
1 Required: a. Time taken by the worker b. Time saved by the
600 units = 10 × 600 worker c. Wages under Halsey Premium Plan d. Effective wages
= 60 hours under Halsey Premium Plan
a) Total wages under straight piece rate= CQ-5. During a month a worker manufactured 1,000 units of
Actual output × normal piece rate output, working 160 hours in a month. The guaranteed wage rate is
W/N Rs. 40 per hour. The estimated time allowed to produce one unit of
Wages rate per hr 5 output in 600 seconds and under the incentive scheme, the time
Normal piece rate= = Rs.0.5
Standard output per hr 10 allowed is increased by 20%.
Total wages under straight piece rate= Required: Calculate monthly total earnings of the worker under:
Actual output × normal piece rate a. Straight piece rate method b. Halsey premium plan c. Rowan
= 600 × 0.5 premium plan
= Rs 300 Solution:
b) Total wages under Halsey Actual output = 1000 units
c) Total wages under Rowan Actual time (AT) = 160 hours
Standard wage rate (SR) = Rs 40
CQ-3. A worker is paid a guaranteed wage rate of Rs. 80 per hour. Standard time (ST):
The standard time to finish the work is 40 hours and he is paid Rs. 1 unit = 600 sec. + 20% of 600
96 as effective wage rate under Rowan Premium plan. 1 unit = 720 sec. or
Required: a. Time taken by the worker b. Time saved by the 1 unit = 12 min. 1 unit = 12 min.
worker c. Wages under Halsey Premium Plan d. Effective wages 1000 units = (12 × 1000) min. 5 unit = 60 min.
under Halsey Premium Plan. 1000 units = 12,000 min 5 unit = 1 hour
𝑇𝑜𝑡𝑎𝑙 𝑤𝑎𝑔𝑒𝑠 1
Effective wage rate under Rowan = 𝐴𝑐𝑡𝑢𝑎𝑙 𝑡𝑖𝑚𝑒 1000 units = 200 hours 1000 units =( 5 × 1000)
𝑇𝑜𝑡𝑎𝑙 𝑤𝑎𝑔𝑒𝑠
Rs 96 = Standard time (ST) = 200 hours = 200 hours
𝐴𝑇
Total wages = Rs 96 AT ………….(i)
 a) Total wages under straight piece rate= CQ-8. The time card of three workers employed for 200 hours
Actual output × normal piece rate reported the following details
W/N Workers A B C
Wages rate per hr 40 Actual output in units 1,000 1,400 1,600
Normal piece rate= = Rs.8
Standard output per hr 5
Total wages under straight piece rate= Guaranteed wage rate per hour is Rs. 38.5 and standard time
Actual output × normal piece rate allowed for 7 units of output is one hour
= 1000 × 8 Required: Wage payable to the workers based on: a. Taylor's
= Rs 8000 differential piece rate system 83% for below standard and 125%
for at or above standard. b. Gantt's task and bonus plan
CQ-6. The effective wage to worker paid under Halsey Premium Solution:
Plan is Rs. 240 per hour. Standard time allowed to complete a job is Standard units
80 hours. The guaranteed wage rate is Rs. 160 per hour. 1 hour = 7 units
You are required to calculate: a. Time taken by the worker b. 200 hours = (7 × 200) units
Time saved by the worker c. Wages under Roman Premium Plan Standard output= 1400 units
d. Effective wages under Rowan Premium Plan Actual output A = 1000 units (Below standard)
Actual output B = 1400 units (At standard)
CQ-7. A company provided the following information: Actual output C = 1600 units (Above standard)
Standard output per month .......................... 1,000 units Wages rate per hr 38.5
Guaranteed wages rate per unit.................... Rs.6 Normal piece rate = = Rs.5.5
Standard output per hr 7
Actual production Monthly of the workers are as under Under Taylor’s differential piece rate system
Workers X Y Z Wages of Mr. A= Actual output X Low piece rate
Actual output in units 500 1,000 1,200 =1000 × 0.83 × Rs 5.5= Rs. 4,565
Required: Monthly wages of the workers under: a. Taylor's
differential piece rate system 83% for below standard and 125% Wages of Mr. B =(Actual output x High piece rate)
for at or above standard, b. Gantt's task and bonus plan = 1400 × (1.25 × Rs 5.5)= Rs. 9,625
Wages of Mr. C = (Actual output x High piece rate)
= 1600 × (1.25 × Rs 5.5)= Rs.11,000
Under Gantt’s task and bonus plan
Wages of Mr. A= Standard output X Normal piece rate
=1400 × Rs 5.5= Rs. 7,700
Wages of Mr. B =(Actual output x High piece rate)
= 1400 × (1.20 × Rs 5.5)= Rs. 9,240
Wages of Mr. C = (Actual output x High piece rate)
= 1600 × (1.20 × Rs 5.5)= Rs.10,560