Worker 'X' of M/s ABC Manufacturing Ltd, was assigned a Job no 101. He began the job on 1st June at 9:00 A.M. and completed on 4th June at 12:00…
CA Intermediate · Cost and Management Accounting · PYQS · January 2026
Worker 'X' of M/s ABC Manufacturing Ltd, was assigned a Job no 101. He began the job on 1st June at 9:00 A.M. and completed on 4th June at 12:00 P.M. There are 9 working hours in a day from 9:00 A.M. onwards. Work done and approved was 1,800 units. Other information: Standard quantity per hour : 45 units per hour Wage rate :150 per hour Bonus (Halsey plan) : 50% of time saved You are required to calculate the remuneration of worker X on the basis of Halsey plan and Rowan Plan.
Suggested Answer and Working Notes:
Time allowed (Standard Time) = 1,800 units / 45 units per hour = 40 hours Time taken = 30 hours (9+9+9+3) Time saved = 10 hour Rate = 150 per hour Total Remuneration of Worker X (under 50% Halsey Scheme) = Hours worked × Rate per hour + 1/2 × time saved × Rate per hour = 30 hours × ₹ 150 + 1/2 × 10 hour ×₹ 150 = 5,250 Total Remuneration of Worker X (under Rowan Scheme) = Hours worked × Rate per hour + (Time taken / Time allowed) x Time saved × Rate = 30 hours × 150 + (30 hours / 40 hours) × 10 hour × 150 = 5,625
Topics: Employee Cost & Direct Expenses
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