COST ACCOUNTING
INTRODUCTION TO COST ACCOUNTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Ordinary piece rate
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105% of ordinary piece rate
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110 % of ordinary piece rate
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120 % of ordinary piece rate
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Detailed explanation-1: -We know Merricks’ differential Piece Rate Systems is as under: upto 83.33% efficiency → Normal Rate 83.33%-upto 100% efficieny → 110% of Normal Rate Above 100% efficiency → 120% of Normal Rate.
Detailed explanation-2: -Note: Under Merrick differential piece-rate system the workers are not penalized for producing below the standard output up to 83%. Daily Min. wage is Rs.
Detailed explanation-3: -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-4: -Under this plan, three graded piece rate is prescribed – Worker’s producing less than 83% of the standard output is paid at a basic piece rate.
Detailed explanation-5: -Merrick’s multiple piece rate is a modification of Taylor; s differential plan. In this method three price rates are used to calculate the wages: 1.Standard piece rate up to 83% of the standard output. 2.10% above the standard rate if output is between 83%-100% 3.20% above the standard rate if output is more than 100%