er Dottie 3.1. From the following information, catculate labour No. of workers as on 01.01.2012 = 7,600 “ 112.2012 © 8,400 Solution Labour Turnover Rates (0 Separation Method (ii) Replacement Method (iii) Flux Rate Alternatively, Flux Rate em 3.2 The following information relates to workforce in a foft-12: i . ‘Number of workers on | April 2011 Number.of workers on 31°March 7 PROBLEMS AND SOLUTIONS ring the year of whom 300 workers were recruited because of exit sited in accordance with expansion plans. orkers Averags 80 +320 (7,600 + 8,400) = 2 Workers replaced x 100 ‘Average number | 300 x 8,000 100 Separations + Replacements ‘Average number 400+ 300 8,000 100 Separations + Ace: ‘Average number 400 + 1500 8,000 ‘ woe . 2012 reed, 1,500 * 100 - 54, = 3.75% 100 = 8.15% = 23.75% factory during the je 2.350 2850 200 100 800 jover rate under dif (B.Com. Hons. Die by — ‘Scanned with CamScannerNo.of workers separated 1, separation Rate Average No.of workers 100 200+ 100 2,600 * 100 = 11.54% 1154 Monthly Rete © 12months = 1% (approx.) 4, Replacement Rate Average No.of workers * 100 200 = 2600 * 100 = 7.1% (approx.) F Monthly Rate 12 months = 0.64% (approx.) Number of workers separated + Number of workers replaced ' = 3, Flux Rate ‘Average No. of workers a 300+ 200 ae = 19.23% 19.23 a Monthly Rate ~ 12 months = 1.6% (approx.) Assumptions TA workers who quit on their own have been replaced) 2, Workers employed due to expansion are w8t taken info account for the computation of turnover rate. = = Ploblem 43 The cost accountant of ¥ Ltd has computed labour tumover rates for the quarter ded 31 March 2012 as 10%, $% and 3% under Flux my placement method and Separation method, respectively. If the number of workers furing that quarter is 30, find out the number of (1) workers recmuited.and joinel, and (2) workers left and discharged. i (B.Com. Hons., Delhi, CA Inter) Solution No. of replacements ‘Average No, of workers 5 30 100 ~ Average No. of workers Labour turnover rate = 100 Average No. of workers = 30 x —>~ = 600, 1. Calculation of workers recruited and joined L No. of separations + No. joined abour turnover rate (Flux method) = average No. of workers Scanned with CamScannerry No. Labour tumover rate (Separation method) 3 100 No. of separations + of workers recruited and joined 10 "18+ No. joined 100 600 600 joined ~ 55 2 42 teft and discharged No. of separations Average No. of workers No. of separations 600 = 18 Thus, the number of workers left and discharged = 18, Prablera.a) Calculate the normal following data: and overtime wages payable to q Workm, fy Days Hours worked Monday 8° Tuesday lo- | Wednesday 9 | Thursday ne | Friday 9 | Saturday 47 | Normal working hours 8 hours a day __ | Normal rate 10 per hour | Overtime rate up £09 hours in a day at single rate wl oF 9 hours ina day at doun | Or ° Solution Calculation of Normal and Overtime W: Up to 48 hours per week at over 48 hours at doiible rate more beneficial to the workm ages sing ee + Whichere| lan, | (B.Com., Madr | Adages a Overtne with CamScannerotal wages under this plan = 440 + R109 = %540 Normal wages (48 hrs * 210) = %480 overtime wages (3 hrs * 20) =%60 roble An employee of XYZ Co, gets the following emoluments and benefits: Salary, _ “ 18250 pm (b) Dearmess Allowance 400” \ On nest £100 otsaliy tn On balance of every 7100 ... 50 or part thereof (@) Employer's contribution to Provident Fund —to ESI «- 8% of salary and DA. «4% of salary and D.A. (@ Bonus «20% of salary and D.A, (@) Other allowances svoun 82,725 per annum — ‘A works for 2,400 hours per annum, out of which 400 hours are non-produétive but treated as notmal idle time, 4 worked for 18 effective hours on job No. 13 where the cost of direct materials equals 4's earnings and the overheads applied are 100% of prime cost. The sale value of the job is quoted to carn a profit of 10% on such value. You are required to find out (@ Effective hourly cost of ‘A’ and (B) Effective sale value of job No. 13 (B.Com. Hons., Delhi, ICWA Inter) Solution (a) Computation of Effective Hourly Cost % per month Salary of A 230 Deamess allowance (400 + 100 + 525 Salary + D.A. 775 Salary + D.A. per annum (775 x 12) 9,300 Employer's contribution to P.F. (8%) m4 To ESI (4%) 32 Bonus (20%) 1,860 Other-allowances Total emoluments Working hours (gross) Less: Normal idle time Effective working hours Effective hourly cost of 4 = %15,001 = 2,000 = 27.50 per hour ‘Scanned with CamScannertion of Sale Value of Job No. 13 Direct material Dicect Inbour (18 hr @ 27.50) Prime Cost Overhead (100% of prime cost) Total Cost h Profit (10% of sales or 1/9 of cost es 3 7 Sale Value 4 | Problem 3.6’ A company's basic wage rate is al hour and its overtime ates Evening ~ time and one-third 2 i Weckends-double the time ‘A During the previous year, the following hours were worked: Normal time 2,20,000 clock hours Time plus one-third 20,000 clock hours Double time 10,000 clock hours The following times have been worked on three jobs: — Job I Job Ir - Clock hr. Clock hn, Pb tn Normal time 3,000 5,000 hy Evening overtime 300 600 4.009 Week-end overtime 100 0 10sp You are required to calculate the labour cost chargeable to each job in oe following circumstances: “* enczect Nf ty 1. Where overtime is worked regularly throu hour the year as the policy of the co due to labour shortage; ' a 2. Wiiere overtime is worked specifically at the request of the customer, Solution Basic rate - %6 per hour * & Evening overtime ~ (6 plus @2) %8 per hour Week-end overtime ~ 212 per hour Wages of the previous year: ‘, Normal time 2,20,000 hours @ %6/hr = %13,20,000 Evening overtime 20,000 hours @ %8/hr = 10,000 hours @ %12/he 30,000 hours, é ut = 16, 000 + 2,5,000 hes a regularly thrqughout the year as the p , it becomes a part of labour cost, 31,60,000 CamScannera, whore overtine is worked specifically atthe request of the he charged 10 the job to be borne by the customer, In thi ed as follows: customer, overtime is to 8 case, each job will be charg Job No. 3.000 hours @ —%6 per hour = %18,000 300 hours @ 8 per hour 2,400 100 hours @ 12 per hour 1,200 Total 21,600 Job No, Hl 5,000 hours @ —% per hour = %30,000 600 hours @ ——%® per hour = — %4,g00 50 hours @ 12 per hour = 600 Total ~~ %35,400 Job No. ll 4,000 hours @ —%6 per hour = %24,000 1,050 hours @ —%® per hour = — 8,400 300 hours @ — U2 per hour = — 23,600 Total %36,000 tn a factory, Ram and Sham produce the same product using the same input of same-fnterial and at the same normal wage rate Bonus is paid (o both of them in the form of normal time w: proportion which time saved bears to the standard time for the completion of the product ‘The time allotted to the product is fifty hour Ram takes thirty hours and Sham takes forty hours to produce the product, The factory cost of the product for Ram is 23,100 and for age rate Sham 23,280. The factory overhead rate is €12 per man hour. a Caleulate (i) Normal wage rate; (ii) ‘Cost of materials used for the product; and (ii Input of material, if the unit material cost is 216, (B. Com. Hons., Dethi) Solution Ram Sham : z Factory cost 3,100 3,280 Factory overheads Ram (30 hrs x 12) 360 Sham (40 hrs x 812) 480 Prime cost 2740 2,800 Difference in wages = 2,800 — 2,740 = %60 | Caleulation of wage rate {Suppose wage rate = x 20 | Wages of Ram = 30x + (20% 2) | | oes 10 ee Sham = 40x + (10s x 2) | ‘Scanned with CamScannerguy following equation js made: var +30: x 2) = (aes 5) [30 KX 5 60 quation and deriv Thus the ¢ the value of x, Solve this ¢ (40x + 8x) - (30x + 12x) = 60 48x - 42x = 00 6x= 60 x= 10 Thus wage rate = %10 per hour 20 ges ofan = 3011s x 10+ (30 10% ] 50) = 49 10 Wages of Sham = 40 hrs x 10 + (40 x 10x 50) =%489 Material cost - Ram's job = %2,740- 420 = %2,320 Sham's job = %2,800 — 480 = %2,320 Material input = %2,320 + €16 = 145 units Scanned with CamScanner