SCHOOL OF ACCOUNTANCY

ACCOUNTING FOR LABOUR

Q. 1. The normal output of a operator is 800 units per hour. On certain day of 8 hours the
operator produced 8,000 units.

REQUIRED: The employee’s total earning for the day and the labour cost per hour, if

a) Straight Time Rate of Rs.16 per hour with a bonus of Rs.2 for 100 extra
productions in excess of normal output.
b) The production is paid for on flat piece rate of Rs.0.02 per unit.
c) The Halsey Premium Plan upon Rs.16 per hour.

Q. 2. The following particulars are apply to an operation of single automatic machine.

Standard time per piece = 15 second

Normal rate of per hour = Rs.1.20

Difference to be applied
80% of price rate below standard
120% of price rate above standard

Worker A produces 2,000 units per day

Worker B produces 1,800 units per day

REQUIRED: Calculate their earnings under straight piece work system and taylor’s
differential price rate system.

Q. 3. Arshad and Bashir, two highly skilled workers of a Textile Mills worked during last
week of September 1990 as under:

Days Hours Worked

Arshad Bashir
Saturday 11 10
Sunday 8 9
Monday 9 9
Tuesday 8 8
Wednesday 9 8
Thursday 4 4
REQUIRED: Normal and Overtime Wages payable to Arshad and Bashir for the week if.
a) Normal working hours are 8.
b) Normal Rate is Rs.20 per hour.
c) Workers are paid as a double the normal rate for hours over and above the
normal working hours as overtime
d) Thursday is half day

From the desk of Sir Majid Masood Page 1 of 1