www.oqp.

in
SCDL- PGDBA- I Semester Management Accounting- Paper Code-103 _____________________________________________________________________ CHAP MATERIAL COST 1) EOQ = root (2AO) where C*i A = annual requirement O = cost of placing an order C = unit purchase price i = carrying cost expenditure as a % of unit purchase price 2) No of orders = 3) 4) 5) 6) 7) 8) A Order size Carrying cost = (Order size) * (cost price) * (carrying cost in %) 2 Total cost = carrying cost + Ordering cost Re-order level = Maximum lead time * Maximum usage Maximum level = Reorder level + Reorder quantity (Minimum Usage * Minimum lead time ) Minimum level = Reorder level (Normal lead time * Normal Usage) Average level = (Max. level + Min. level) 2 Or Safety stock + (Max. level or EOQ) 2 Danger level = Normal Usage * lead time for emergency purchases

9)

CHAP LABOUR COST A] Time Rate System: 1) High Wage Plan 2) Differential Time rate Efficiency Upto 80% Between 80% - 90% Between 90% - 100% Between 100% - 125% B] Payment by Results a) Straight Piece Rate System b) Piece Rate with Guaranteed Time Rate c) Differential Piece Rate System: Efficiency Upto 83.% 1 www.onlinequestionpapers.com Piece rate Normal piece rate

Normal day rate Re 1 (Normal rate) Rs 1.25 Rs 1.40 Rs 1.50

For more solved assignments, Assignment and project help visit www.oqp.in or

www.oqp.in
SCDL- PGDBA- I Semester Management Accounting- Paper Code-103 _____________________________________________________________________ Between 83% - 100 % Above 100% The above is again differentiated into 1) Taylor Differential Piece Rate 2) Merrick Differential Piece Rate: Efficiency Upto 83.% Between 83% - 100 % Above 100% 10% above normal piece rate 30% above normal piece rate

Piece rate Normal rate 110% above normal rate 130% above normal rate

3) Gantt Task Bonus System It is a combination of time rate and piece rate and provides for minimum time rate payment. The wage structure may be fixed as below: Output below standard Output at standard Output above standard C] Individual Incentive Systems: 1) Halsey Premium System (AR * HR) + {(SH AH) * HR} (assuming 50% - 50% sharing between the 2 worker and employer) 2) Halsey Weir Premium System 1/3:2/3 ratio between worker and the employer 3) Rowan Premium System (AH * HR) {1 + SH AH} SH D] Other methods of Premiums: 1) Barth Premium System Wages = HR * root (SH * AH) Applicable only for beginners or apprentices 2) Emersons Efficiency Bonus System Wages = {AH * HR + Bonus % of AH * HR} Efficiency Bonus Upto 63.333% No bonus 66.333% - 100% Increases from 20% to 100% 2
For more solved assignments, Assignment and project help visit www.oqp.in or

Minimum time rate payment Time wages + some increase in wage rates High piece rate for entire output

www.onlinequestionpapers.com

www.oqp.in
SCDL- PGDBA- I Semester Management Accounting- Paper Code-103 _____________________________________________________________________ Above 100% 20% + 1% bonus increase in every in efficiency Eg. 101% 21% bonus 120% 30% bonus 120% 40% & so on

Suitable for non- efficient workers for improving their efficiency Calculation for efficiency % : On Time basis SH * 100 AH On Output basis AH * 100 SH

3) Bedaux Point System SH is divided into standard minutes & each standard minute is called Bedaux point or B. Wages = AH * HR + 75% of Bs * HR 60 (Bs = no of Bs saved)

4) Accelerating Premium System Here incentive increase in a faster rate with an increase in output. Y = 0.8 X 2 where Y = earnings and X = efficiency Now Earnings = (Basic wages + bonus) in % [for eg. If earnings = 1.25 then 125% = 100 % basic wages + 25 % bonus] Basic wages = AH * HR Bonus = % of basic wages 5) Baum Differential Plan Also called Milwankee Plan. It is a combination of Taylor Differential Piece rate + Halsey System 6) Diemer System It is a combination of Halsey System + Gantt System Measurement of Labour Turnover: 1] Separation Method: No. of separations * 100 Average no of workers 2] Replacement Method: No. of replacements * 100 Average no of workers 3
For more solved assignments, Assignment and project help visit www.oqp.in or

www.onlinequestionpapers.com

www.oqp.in
SCDL- PGDBA- I Semester Management Accounting- Paper Code-103 _____________________________________________________________________ 3] Flux Method: No. of separations + No of replacements Average no of workers

* 100

Treatment of Idle time: (Read all the cases) case III When idle time is normal and uncontrollable then, if attended time = x, time booked = y and labour cost = l then Idle time = lx /y CHAP OVERHEAD COSTS 1] Direct Material Cost % Rate: Amount of overheads to be absorbed Direct Material Cost 2] Direct Wages Cost % Rate: Amount of overheads to be absorbed Direct wages Cost 3] Prime Cost % Rate: Amount of overheads to be absorbed Prime Cost 4] Labour Hour Rate: Amount of overheads to be absorbed Labour hours required for production 5] Machine Hour Rate: Amount of overheads to be absorbed No. of Machines hours Eg. period I II Overheads Absorbed (Rs) 7500 10000

* 100

* 100

* 100

* 100

* 100

Actual Overheads (Rs) 9000 8000

Remarks Under absorption Over absorption

For more solved assignments, Assignment and project help visit www.oqp.in or

www.onlinequestionpapers.com

www.oqp.in
SCDL- PGDBA- I Semester Management Accounting- Paper Code-103 _____________________________________________________________________

For more solved assignments, Assignment and project help visit www.oqp.in or

www.onlinequestionpapers.com