Question

Basic hourly rate = Gh 80
Incentive on rate =20%
Required
a)Output is expected to be 10units per hour
b)Calculate the rate perwork rate
The total amount to be paid on the total wage if 100units were produced in 8-hour day .
2. Hourly rate = ghc 10 per hour
Agreed production rate=50 units per hour
Hours worked =8hours
Units produced for the period =1000units
Required : calculate his wage using the piecework method

3.A firm basic rate is c50 per hour and overtime rates are a time and half for evenings and double time for the weekends. The following details have been recorded on 4jobs

        JOB A.     JOB B.     JOB C     JOB D
Nor .600.          800.         700.        850
Time

Eve. 120.           300.          230.       140
Time

Wk. 30.              70.             40.         60
Ends

You are required to calculate the Lacour cost changeable to each in the following circumstances
I. When overtime is worked occasionally to meet production requirements.
II.Where overtime is worked at the customers request to bring forward the delivery time .

Answer 1

( 1 ) Output is expected to be 10 uts per hour

Actual output is 100 uts in a 8 hour day , Which means Time Worked , T = 8 hrs

Rate per hour , R = 80

with this data calculating Standard Time

to make  10uts - we need 1 hr

for making 100 uts -( how much time needed? )   

cross multiplication

= 100 uts x 1 hr/ 10uts

Standard Time = 10 Hrs  

time saved = Standard time - Actual Time

now calculating earnings (Time x rate) +20% ( Time saved x Rate )

( 8hrs x 80) + 20% ( 10hrs - 8 hrs ) x 80   

= 640 + 32 = 672

rate per work rate = Total earnings / Hours worked

= 672 / 8 hrs = 84 per hour

(2) Calculation of piece rate = rate per hour / production per hour

10 / 50 uts = 0.2 per unit

wage = piece rate x units produced

= 0.2 x 1000 = 200

3)

here

J ob A B C D

normal 600 800 700 850

eve time 120 300 230 140

weekend 30 70 40 60

total 750 1170 970 1050

(i)  When overtime is worked occasionally Normal work rate is charged to job and overtime charges charged to factory over heads , which means

Total Hours Worked x Normal rate per hour

A = 750 x 50 = 37500

B= 1170 x 50 = 58500

C = 970 x 50 = 48500

D = 1050 x 50 = 52500

these are charged to job as labour cost

overtime is charged accordingly to factory overheads

(ii) when overtime is charged according to customer request overtime premium also charged to job

Labour cost chargeable =

A = 600 x 50 + 120 x 75 + 30 x 100 = 42000

B = 800 x 50 + 300 x 75 + 70 x 100 = 69500

C= 700 x 50 + 230 x 75 + 40 x 100 = 56250

D = 850 x 50 + 140 x75 + 60 x 100 = 59000