|Q.9. Write the formula of calculating wages on hourly basis under time rate system.Ans. Under time rate system, workers are paid according to the time for which they work. Payment may be made on hourly, daily or monthly basis. No consideration is given to quantity or quality of work done. When payment is made on hourly basis total wages payable are calculated as follows: -
Wages = No. of hours worked x rate per hour
Q.10. How wages are calculated on piece rate system.
Ans. Wages under this system are paid according to the quantity of work done. A rate is fixed
per unit of production and wages are calculated by the following formula: -
Wages = Rate per unit x No. of units produced
Q.11. Write two principles of a good incentive scheme. Ans.
i. The scheme should be simple and easily understandable by workers so that a
worker should be able to calculated his own wage easily.
The scheme should be fair to both employer and employee.
Q.12. Write down formula of calculating bonus under Halsey Premium Plan. Ans. Halsey Bonus = 50% of [time saved x time rate] Total earnings = time rate x time taken + 50% of [time saved x time rate]
Q.13. How much is the bonus rate under Halsey Weir Plan.
Ans. This method is precisely the same as Halsey Plan except that in Halsey weir Plan, the bonus is equal to 30% of the time saved.
Q.14. How bonus is calculated under Rowan Plan.
Ans. Rowan Bonus — Time saved_____ x time taken x time rate
Q.15. Write the formula of Barth Plan.
Ans. Unlike other premium plans, Barth Plan does not guarantee time wages. Computation of wages under this plan is done by the following formula: -
Earnings = Rate per hour x VStandard time x Actual time LONG ANSWER QUESTIONS:
1. Distinguish between direct and indirect labour. What are the costs which are normally classified as indirect labour in a manufacturing concern? How are the direct and indirect
labour costs identified in a time-cum-job card.
(a) What are the documents used in accounting for wages? State in brief the purpose of each of them.
(b) Bring out clearly the treatment of idle time in cost accounts.
Give a brief outline of the organization for accounting and control of labour cost.
What do you understand by labour turnover? Discuss the causes of labour turnover and its effect on cost of production.
What is meant by labour turnover? Explain how it affects manufacturing costs.
What is the meaning of labour turnover? How it is measured? By what measures do you reduce labour turnover.
Explain the difference between work measurement and motion study.
Write an essay on time and motion study, stating the benefits to be derived by the management from such study.
What do you understand by time and motion study? In what way it is connected with remuneration of labour?
What do you understand by time and motion study? Explain bow standard time is set under time study. State how time and motion study is useful to the management.
Explain the methods and records of time keeping. What are the function of time keeping records?
Explain the purpose of time keeping and time booking and state what are the detailed records normally maintained under each. Do you feel any need for reconciliation of these two? What is the benefit you expect if such reconciliation is carried out?
What are the various methods of time booking state the advantages and disadvantages of each method?
How is payroll accounting function organized in a manufacturing establishment?
Apart from gross wages payable to direct workgrs on the basis of attendance, an industry incurs substantiakost for their benefit. Name four such benefits. How would you treat each of these in cost?
What do you understand by idle time? Suggest its treatment in costing. How does it differ from idle facility and idle capacity.
17. Discuss the different methods of wage payments to workers.
What are the premium bonus plans? Explain the essential features of any two such plans.
19. Distinguish between Piece rate and Time rate.
Enumerate the precautions you would suggest before implementing a system of payment of wages based on output.
21. Explain what is meant by group bonus and state the objectives of introducing a group
bonus scheme in a factory. Discuss briefly the various schemes of group bonus.
22. What are piece rates?. What advantages and disadvantages are attributed to their use? What principles govern the determination of piece rates?
23. What are the basic considerations which govern remuneration of workers? Name the
various factors that are taken into account for determining wage level as well as individual employee’s remuneration.
24. What are the factors to be taken into account before adopting a particular system of wage payment?
25. What do you understand by “incentive to workman”? what are the principles of a good incentive scheme? Discuss the advantages of incentive schemes.
26. What are the merits and demerits of time rate and the piece rate systems of wage payment? State the situations in which each system is effective and useful.
27. Discuss the adyantages and disadvantages of having piece rate system of payment of wages.
28. Explain the difference between time rates and piece rates.
29. Explain the following methods of wages payment:
Emerson’s Efficiency Plan.
Similar Accounting Articles:
- Labour Cost — Accounting and Control (OBJECTIVE QUESTIONS)
- VARIOUS INCENTIVE PLANS
- Rowan Plan features & formula
- Labour Cost — Accounting and Control (Illustration)
- COMPARISON OF HALSEY-PLAN AND ROWAN PLAN