a works for 2 400 hours per annum out of which 400 hours are non productive but trea 619597

A, an employee of XYZ Co., gets the following emoluments and benefits:

1. Salary Rs. 250 p.m.
2. Dearness allowance (DA)

on 1st Rs. 100 of salary Rs. 400

on next Rs. 100 of salary Rs. 100

on balance every Rs. 100 Rs. 50 or part thereof

1. Employer’s contribution to:

Bonus 20% of salary and DA

1. Other allowances 2,725 p.a.

A works for 2,400 hours per annum; out of which 400 hours are non-productive but treated as normal idle time. A worked for 18 effective hours in Job No. 13 where the cost of direct material equals A’s earnings and the overhead applied is 100% of prime cost. The sale value of the job is quoted to earn a profit of 10% on such value.

You are required to find out:

1. the effective hourly cost of A and
2. the expected sale value of Job No. 13.