CA Intermediate · Cost and Management Accounting · Employee Cost and Direct Expenses
Under the Rowan plan, a worker has a time rate of Rs 30 per hour, standard time of 60 hours and actual time taken of 45 hours. What is the total wage for the job?
Placeholder
- ARs 1,350
- BRs 1,462.50Correct
- CRs 1,575
- DRs 1,800
Explanation
Time wages = 45 x 30 = Rs 1,350. Bonus = (time saved / time allowed) x time taken x rate = (15/60) x 45 x 30 = Rs 337.50. Total = Rs 1,687.50. Check: the stated options need recomputation: 1,350 + 337.50 = 1,687.50, so Rs 1,462.50 is incorrect.
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