LABOUR COSTING

Majos Smponal

Incentive
wage plans.
Plan

hiously ~ Output
v
basis.
basic

Hours based
wage.
A B =

Mi. (week. 50- 6062

Rate. 50 20175
rage
normal hones.15is
weekly
Obestime premium *

50x155 60x200 62x175

wage. 12000 10,850
7500
7 ~

30,350

Wage Eap. 30,350

30,350
Cach

2 Ouestime Planium
A # -
Miss NOKd 50 60 62

holyzate 150 200 175

Overtime posmism.60%

wage E # -

50 60 62
(a) Kaam

7.500 -
12,000 10,850
wage. 30,358

&
+ +

(3) Iname (50 45)

-
(60 45)
-

(62 -
45)
07. 5. 15 17

Premium 5x150260% 15x200x600 17x175x60%

450 + 1800 + 1785:4035
Total 7500 758 12000 180010,850 + 1785
+
payable.
+

7,958 + 13,800 12,635=37,385

+
 30,350
wages Ep.
30,350
wage. 4835
Psemnium 4035 Overhead.
Cach 34.385
34.385
-

100 + 60 100
wag.
-
-

160
760007

Indirect
wages.
Departments
where overheads
are incussed
7

& Jobe
Directwag -> Floos whe
Disect
wags
are
incursed.

10 hous

6 hoUs. Yhous.
Disx Indirect
1700s, Labous
900
holysate:150 WageEup 600
Overhead.
6x150 Cach 1500

4 x 150
1900

-
[houss)
(Nouk)
Chouss).

Favai 80- =
R:
~

SAN

As - Disect
E..
Us-End.
70

##2 Find overtime.

Overtime (Ms) 30 15 P
 I overhead.
wage
(a) Kaam A -B =

D. 7200 + 8,000 8,000 23,200

wage.
+

End. 1,200 800 1,600 3600

coage

(b) Iname
(30x120x504)
(x200x800)
Overtime peric. (15x160x60)
1800 1440 4520

Journal

23,200
wage Eap. 8.120(3600 7520)
Overhead.
+

Cash 31,320
 PIECE RATESYSTEM

Ps unit R2:400
=

A 20 Vit x400
=

8,000
=

B:25 + x700:10,000

7 18.x400:7,200
:

what
if
these is no
production.
Problem- (No
wage).
whatif Good are produced
G. Saver
quickly
and

digy 3sts.

(saving Bonn).

Gussated
wage.
(a) Min
wage.
guastwages.
add
(b) on

Dayl age200 , =
3,000
Minuage
2500x
wage.
3,000
200:3,600 2500x 3,600
18 City
Days cit 200:1,800 2500s
9 x 2500
Days
+

Dayl age
, 200 3,000 250:
=
+

-
wage.
5,500
200:3,600
18 City 6,100
Day2 2500
+ "
-

9 (t + 200:1,000 250:7,300
Days
+

BONUS INCENTIVE

house in a

day 8hous.
=

0.5hou,

Expected Output
~
Honit
Actual ·IP :20 Uriti

250/65
hously
Bonu
safe :R S:
=
(%

-
waga. Re:
Emp.hs. 20 x0.5
18 Yous.
Actual Rs. 8 no..
8x250 = 2,000
->

300 2hous
2 x 250 x 60%:

2300 =8:28757.
shown
wage
I
Kaam-Actual

10 house -> Disect hous

2hous - Indiant

Expected 01P in 10 hour:15004.

Actual in 10hon:210rit
op
Rate:R:105/tous (NO Evestime).

done.
##1 Actual work

Disecthous 10
Indijecthouse 22

12

##2 Bonn hons. (Time sneed)

1 hous
Expected time
for
actual
output
(210 15) =

tohowwe
Actual his

1 210
x 14
=

Kaam

Direct 10 housix
105:1050
Indix 2 Hoursx
105 210
=

Inam
-

Bouu =
4h00 x105 x60%252

LagvEp 1050
-

Overhead. 462
Cash 1,512
Routine.
& house -> 16 wit

poly wage:Re:500 16 n .2
8 7,000
500 x :

nt
Shou -> 20 Uniti
= 10
.

Time allowed. 10 hous

Actual hiss (8hous)
saved. 2 Hous

Kaam Shows x500 4000 7000

2houx500:1000 600
Saviny. x 60%
4600-

Benefit. Employee begin

Reduced. 7600:8hous:575/hous
wage
500/7 -

2 Overstood u

Function

Actual 019:
20: is:10hous:
Expected
01P / 4 . 2
Astualtis:(ohouss
Time
savingZhous
how my safe
x 500
X x 60%
BOnL". 600
=

40
weekly normal has

Erpacted weekly o/p 20 wit

=

20:0.5vit
holy rate - 1.350
40

#um
plan me saved.
25
0.5
=50 house
ns,
->
-
Emp.
Actual OIP
50-40:10 hours
Unit
25
produced --
sa0.

wage
40 x 350:1,000
-

Bom. 10x355 2100

x60%

16,100
=>
O

Step #: find work done (houss

Disect hous 50-

End is hous 18
Total no 68

Step #2 Overtime

isol
Actual has.
hons
staweekly
Overtime.

Step s Bonu

vit
Actual 01p:13
nomnit:5hous
house:13x5: 65
Total
Emp
65-50:15bonss saved.

Step #
Wage
& Oveshead.

Kaom
DirectLabour
(wage) 50 house.x (50:28000
10,080
I
Labous
Indirect (oves teach) 18hous x500:

In am

· Overtime (semium 23x560

=
x 70% 9016
=

·
Bona:15x560 60% 5040
x -
 -wage. Overheads
Disact Labous 28,000
Indirect Labour 10060
1

Overtime 9016
Bone 5070 1

28,000
- >
-
24,136
=

Joninal

28,000
wage.
Overhead24, 136
Canh 52,136

v n v
-

u c 1

· w
- !1
·

Actual - .

->

->

->
-

Step #1 work done (housi

To.
N

Dijecthours. 65.
Indirecthouse 28 10 j
Total lis 60 65 70

Step #2 Over time

his worked 60 65 70
Stdi Iweek 45
10
45

15 25

breakup 5 10 5 15 5 20
~

Step #3 Bona.
N
L I -
-

Unip. 192 175 150

liss Init 0.4 0.6

Expected hos 25 70 90
(40) (55)
(5)
Actual tis
Time saved. & 15
 o
Payroll L N

1:57:3.
Kaam 1:40:0y
Disect house 2400 + 4400 + 3.250 100500
=

Indirect house 1,200 800 250= 2250x

Inom 5hs 07.P (70%) 120 160 100

Us, (603) 360 720 600
jusThes OTP
20600
480 880 700
60x5+ 40%.
80 x 5+40%
50x5x40%

Bowen. (60%) 288 720 750 17582

&x60 x 60 %
6068
15480 x 60 % =
25 +50 x 60%.

Journal

10050
Wage Eap.
Overhead 6068
Las
to 12,300
payable born. 1758
Poor, for
por-go2 OT 2860

Labous
Payable to

bor
12,300
1758
Poorfor
poor, for 0T 2060
Canh/Bank 16.118

V W L

v N N

v
⑤
Y

SHI MOK done

I #
Disect hist To. 52. 50.

Ind. Nxc. 20. 18. 15.

Totallis. 80 70 65
 Step #2 Over time

Actual n 00 70 65
Normal ha (75) (45) (75)
One-time. 35. 25
- 202

Step #3 (Time Saved

was
J C H

Actual of P 200 240 190

As unit 0.4 0.4 0.3

Expected 15 80 96 57
ActualDirecthos -0) (52) (50)
his saved. 20w 44 7u

Step #4 J C H

Direct 42,600
Mage. 15,000 15,600 12000
# +

Overheads.
5,000 5400 3600
And,wage
1
&

4.375 3,750 27007

Bonn. 3,000 792 100 8

1

12,375+ 17070 # 7008 36,453

79.053
=

35x250x50% Journal

72,600
wage. 36,453
Onehead.
Cash Bank79.053

Labous Effeciency
Std hours in a
day.Blissunit.
Staop Pahous:2

Output Peday:16 0it

Actual Production 20 Uit

in a
day,

Effeciency (output)
~Actual SIP 20
=
= 125-,
16
-Expected op
 Effeciency (Input-hss)

20 unit his10 house.

>
Enpacted
"
Empacted his. 10 hors 125%.
liss
-

~
Actual &HOU,

Steps
his actual
Expected considering olp

200nt=20nt: 10 hous

2
Compase with
it Actual his

&has actual.

10
125%
8:

o
I

StdElit 0.4
=

t
Actualolp:200
Actual his 32 hous

Expected his 0.7 80

200 x = Hous
#ctaal K s. 32 now
·

10
:250%
32

32 = 0.4:80 units

Actual:200 ..

200
:250%
80

⑦
Actual ho: 100

105
Expected no:

105/100:105].
&
Actual no.50 hous

E05 ~ 50%

Empchi o =
Empoli:80%
50

Emp.ha:70 hows
 Emp. Uss.

Actalh..

⑦
A ctual nos
I
250

Especiency:90%
Expected house.
Efficiency.
Actualhous

225
=90%
25

a
z Actual hsc: 50v
65..2
Ejecian:
E00.4 to
v
:
78%.

Expected his = 65%

50

Emp. 1. 32.5 -

325.78
-

IAH 41.67 :
hous v

D
=
Demand:40000 wit

Acthashait:1.5 tons

Execiancy (NOW):65%2
Targeta 78%
Cussantbox actual: ?
his
after achiving target effeciency-?
Solution

40000
--

x 1.5:60,000 39000
( L
78%
=

Actual less
Expected his 65%
60,000 Actalhis:50,000

Expected 10s:39,000 -