LABOUR COST CONTROL

SUMS
1. From the following data given by the Personnel Department, calculate the labour turnover rate
by applying: a) Separation Method b) Replacement method c) Flux Method
No. of workers on the payroll:
At the beginning of the month 900
At the end of the month 1100
During the month, 10 workers left and 40 persons were discharged and 150 workers were
recruited. Of these, 25 workers are recruited in the vacancies of those leaving, while the rest
were engaged for an expansion scheme.

2. Calculate total earnings and effective wage rate per hour under Halsey plan:
Time allowed 48 hours
Time taken 40 hours
Rate per hour Rs.10

3. Standard time allowed for a job is 20 hours at the rate of Rs.2 plus D.A. at 60 paise per hour
worked. Actual time taken by a worker is 15 hours. Calculate his earnings under Halsey plan.

4. In a factory the standard output is 48 units per week for a working week of 48 hours. The
hourly rate is Rs.2. Three workers A, B and C produce 42, 48 and 72 units in a particular
week. Find out the earnings of each worker under the Halsey system of wage payment.

5. A workman’s wages for a guaranteed 44 hour week is Rs.0.75 per hour. The estimated time to
produce one article is 30 minutes and under an incentive plan, the time allowed is increased
by 20%. During a week, a worker produced 100 articles. Calculate the wages under each of
the following methods: a) Time Rate b) Rowan System and c) Halsey plan.

6. Using a Taylor’s plan, calculate the earnings of workers from the following information.
Normal rate per hour = Rs.12
Standard time per piece = 20 minutes
In a 9-hour day, A produces 26 units and B produces 30 units.

7. Standard time fixed for a job in a manufacturing concern is 40 hours. Time rate is 60 paise per
hour. The actual time taken by the workers A, B and C is 20 hours, 15 hours and 30 hours
respectively.
Calculate total remuneration of A, B and C on the basis of (i) Halsey plan & (ii) Rowan plan.

8. A worker takes 9 hours to complete a job on daily wages and 6 hours on a scheme of payment
by results. His day rate is 75 paise an hour, the material cost of the product is Rs.4 and the
overheads are recorded at 150% of the total direct wages. Calculate the factory cost of the
product under: a)Piece work plan b) Rowan plan and c)Halsey plan.

9. A worker produced 200 units in a week’s time. The guaranteed weekly wage payment for 45
hours is Rs.81. The expected time to produce one unit is 15 minutes which is raised further by
 20% under the incentive scheme. What will be earnings per hour of that worker under Halsey
(50% sharing) and Rowan bonus schemes?

10. From the data given below, calculate the comparative works cost for a job in factory A and
factory B:

Factory A Factory B
Method of payment of wages Halsey plan Rowan plan
Standard time for the job 250 hours 240 hours
Actual time taken by a worker to complete the job 200 hours 210 hours
Hourly rate of wages Rs.2.50 Rs. 3.00
Material cost for the job Rs.1000 Rs.900
Factory overhead 150% of wages 133 1/3% of wages

11. On the basis of following information, calculate the earnings of worker X and Y on:
(i) Straight piece basis and (ii) Taylor’s Differential piece rate system
Standard Production – 8 units per hour
Normal time rate - Rs.4 per hour

Differentials to be applied:
(a) 80% of piece rate below standard
(b) 120% of piece rate at or above standard
In a 9 hour day, X produced 54 units and Y produced 7 units.

12. A worker under the Halsey method of remuneration has a time rate of Rs.24 per week of 48
hours, plus a cost of living bonus of 10 paise per hour worked. He is given a 20 hours task to
perform, which he accomplishes in 16 hours. He is allowed 50 per cent of the time saved as
premium bonus. What would be his total hourly rate of earnings and what difference would it
make if he were to be paid under the Rowan method?

13. The following are the particulars given to you.

Standard time 10 hours
Time rate Rs 3 per hour
Prepare a comparative table under Halsey plan and Rowan plan if time taken is 9 hours, 8
hours, 6 hours, 4 hours and 3 hours. The table should clearly show the amount of bonus
payable, the amount of total wages and labour cost per hour under the two methods. State at
least one point of distinction between Halsey plan and Rowan plan in the light of your
calculations.
14. There are two piece workers, A and B who are paid Rs 5 each piece work execute which costs
Rs 15 per piece in material.
In a working day of 8 hours, A can complete 4 pieces and B only 3. If the overhead charges
be Rs 1.50 per hour, show which of the two piece workers is more useful to the firm.

15. The three workers Govind, Ram and Shyam produced 80 pieces, 100 pieces and 120 pieces
respective of a product “X” on a particular day in may in a factory. The time allowed for 10
units of product X is 1 hour and their hourly rate is Rs 4. Calculate for each of these three
workers the following:
(I) Earning for the day, and
(II) Effective Rate of Earnings per hour under: (a) Straight piece-rate, (b) Halsey Premium
Bonus ( 50% sharing),
(III) Rowan premium bonus methods methods of labour remuneration.