In a manufacturing concern, the bonus to workers is paid on a slab rate based on cost savings towards labour and overheads. The following are the slab rates:
|
up to 10% saving |
5% of earning |
|
up to 15% saving |
9% of earning |
|
up to 20% saving |
13% of earning |
|
up to 30% saving |
21% of earning |
|
up to 40% saving |
28% of earning |
|
above 40% saving |
32% of earning |
The wages rate per hour of 4 workers – P, Q, R and S are, respectively, Re. 1; Rs. 1.10; Rs. 1.20; and Rs. 1.40. Overheads are recovered on direct wages at the rate of 200% standard cost under wages and overheads per unit of production is fixed at Rs. 30. The workers have completed one unit each in 8, 7, 5 ½ and 5 hours, respectively. Calculate in respect of each worker:
- The amount of bonus earned
- Total earnings
- Total earnings per hour