A factory runs 8 hours a day. Standard time for producing each unit is 15 minutes.

Workers are
allowed wages at Tk. 30 per hour. They receive 50% house rent and 20% dearness allowance on
normal pay. They also receive Tk. 100 per week as medical benefit. They contribute 10% of
normal pay to provident fund. Output of a worker during a week was as follows:
Sunday 60 units; Monday 66 units; Tuesday 56 units; Wednesday 70 units; Thursday 50 units.

Required:
Calculate the net amount payable to the worker for the week under:

i. Halsey Premium Plan

ii. Rowan Premium Plan

Solution:

(i) + (ii) Under Halsey and Rowan Premium Plan:

Standard unit produced per hour = 60/15 = 4 units

Day Standard Actual Hours Premium under Halsey Premium under Rowan
hours hours saved Plan Plan
Sunday 60/4=15.0 8 7.0 50%×7.0×30=105.0 7.0/15.0×8×30=112.00
Monday 66/4=16.5 8 8.5 50%×8.5×30=127.5 8.5/16.5×8×30=123.64
Tuesday 56/4=14.0 8 6.0 50%×6.0×30=90.0 6.0/14.0×8×30=102.86
Wednesday 70/4=17.5 8 9.5 50%×9.5×30=142.5 9.5/17.5×8×30=130.29
Thursday 50/4=12.5 8 4.5 50%×4.5×30=67.50 4.5/12.5×8×30=86.40
Total Tk. 532.50 Tk. 555.19

Halsey Plan Rowan Plan

Regular wage (30×8×5) 1,200.00 1,200.00
Add: Premium 532.50 555.19
House rent (1,200×50%) 600.00 600.00
Dearness allowance (1,200×20%) 240.00 240.00
Medical benefit 100.00 100.00
2,672.50 2,695.19
Less: Provident fund (1,200×10%) 120.00 120.00
Net Wage 2,552.50 2,575.19