Labour Cost definition with examples and formula

Definition of Labour Cost with formula and example to solve the problems with the suitable solution using concept in accounting keeping in mind the limitations and errors. How to calculate Labour Cost with disadvantages and advantages using the rules in Cost and Management Accounting.

PRACTICAL PROBLEMS

Required :             Calculate his Gross Wages acco7Jing to : I.      Piece work with guaranteed weekly wage. Rowan Premium Plan. Halsey Premium Plan. Answer :                (1) Rs. 192.            (2) Rs. 242.22              (3) Rs. 226. P.8-12: There are ten men working as … Continue reading

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PRACTICAL PROBLEMS

UNITS HOURS Monday 160 8 Tuesday 170 8 wednesday 175 8   (b)                    If the 100 percent bonus plan is used and 880 units are produced in a 40 hour week. (c)                     If an incentive plan is used, providing and … Continue reading

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PRACTICAL PROBLEMS

P.8-1:From the following particulars calculate the earnings of workers A and B under ( ) Straight piece rates and (ii) Taylor’s differential piece rates: Standard time per piece 30 seconds Normal rate per hour Rs.2.40 Differential rates: 80% of piece … Continue reading

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Labour Cost — Accounting and Control (Illustration )

Illustration 8-29: Jobs are issued to operative •A’, to make 189 units, and to operative `B’, to make 204 units, for which a time allowance of 20 standard minutes and 15 standard minutes per unit respectively is credited. For every … Continue reading

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Labour Cost — Accounting and Control (Illustration)

Illustration 8-15: In a manufacturing concern, bonus to workers is paid on a slab rate based on cost savings towards labour and overheads. The following are the slab rates: (i)     Up to 10% saving, 5% of earning. (ii)   Up to … Continue reading

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Labour Cost — Accounting and Control (Illustration)

Illustration 8-12: The standard time fixed to complete a product is 12 hours at Rs.0.25 paise per hour Time wages are allowed to workers taking more than the time allowed. But workers who complete the job in standard time or … Continue reading

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Labour Cost — Accounting and Control (Illustration_8)

Illustration 8-8: The following is a weekly payroll summary made up from the time tickets of the Z. Company Employees Classification Hours Regular Overtime Hourly Rate A Direct 40 2 1.80 Direct 40 3 1.80 Direct 40 5 2.00 Direct … Continue reading

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Labour Cost — Accounting and Control

Illustration 8-7: The following represents the factory payroll for three production departments of H Manufacturing Company. This company maintains a payroll summary account as ‘well as direct and indirect labour accounts for each of the three producing departments. Wages are … Continue reading

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Labour Cost — Accounting and Control ()

Illustration 8-2:     The extract from the payroll of a company is as follows: Number of employees at the beginning of 2004                              135 Number of employees at the end of 2004                                        165 Number of employees resigned                                                         20 Number of employees discharged                                                        … Continue reading

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Accelerated Premium Plans

Accelerated Premium Plans This covers all incentive plans in which bonus increases at a faster and faster rate with the increase in output. The purpose of such plans is to provide at all levels of production a powerful incentive to … Continue reading

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