Standard production-10 unis per hourNormal time rate-Rs. 5 per hour.Differentials to be applied:80% of piece rate for below standard120% of piece rate at or above standardIn a 10 hour day Arun produced 80 units and Rani produced 110 units. Calculate the wages of two workers under Taylors differential piece rate system.

INTRODUCTION TO COST ACCOUNTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Standard production-10 unis per hourNormal time rate-Rs. 5 per hour.Differentials to be applied:80% of piece rate for below standard120% of piece rate at or above standardIn a 10 hour day Arun produced 80 units and Rani produced 110 units. Calculate the wages of two workers under Taylor’s differential piece rate system.

A	Arun Rs.32, Rani Rs. 66
B	Arun Rs.40 Rani Rs.55
C	Arun Rs.44 Rani Rs.66
D	Arun Rs.40 Rani Rs.50

Explanation:

Detailed explanation-1: -1.2 Formula for Merrick Differential Piece-Rate System The progressive method uses a structure as follows; Straight price up to X% of the standard output which is already pre-determined. Between X% up to (X+Y) %, be paid above the normal production. Any production >(X+Y) %, pay is above the rest previously mentioned.

Detailed explanation-2: -Divide the hourly minimum wage rate by that number to work out the fair rate for each piece of work completed.

Detailed explanation-3: -noun. : a method of wage payment whereby after tests have set a standard time for a task the worker receives a high piece rate for doing the job in task time and a lower piece rate for taking longer than task time.

Detailed explanation-4: -Taylor’s differential piece-rate system posits that the worker who exceeds the standard output within the stipulated time must be paid a high rate for high production. On the other hand, the worker is paid a low rate if he fails to reach the level of output within the standard time.

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