COST ACCOUNTING
PROCESS COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Joshua
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Hadi
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Ko Hadi
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Hadianto
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Detailed explanation-1: -Bonus= Time saved /Standard time x Time taken x Rate per hour ■ Total Earnings = (Time taken x Rate per hour )+Bonus.
Detailed explanation-2: -Rowan System is a plan for rewarding employees where by the method advocates that an employee be paid according to the time rate set if he or she takes more than the set period to finish the task. But a bonus is tied on one’s salary if the same task is accomplished within a shorter time than stipulated.
Detailed explanation-3: -100% Bonus Plan: Under this plan, the workers get a bonus at the rate of 100% of time saved by them.
Detailed explanation-4: -Solution:(a)Calculation of wages under Time Rate SystemEarnings under time wages = TR= 48 × 1.8=‘86.4(b)Calculation of wages under Piece Rate with a Guaranteed Wage RateNormal Time for one unit= 20 minutes(+) Relaxation allowance 25%=5 minutesStandard Time=25 minutesNo. of pieces per hour= 60/25 pieces.