Management Accounting By Paresh Shah Oxford University Press Chapter No.

Chapter Name 4 Labour Costing

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Statement showing the cost per man day of 8 hours Total labour expenses incurred per worker p.m. Rs. A Basic Salary and Dearness Allowance B Leave Salary C Employers contribution to PF D Amen ties to labour per head per month Total 0.00 Working Hours per Month = 1 hours Labour cost per man day of 8 hours = 0.00

Standard Production per month Worker X's Actual Output Worker X's efficiency Worker Y's Actual Output Worker Y's efficiency Worker Z's Actual Output Worker Z's efficiency

1 Units Units 0% Units 0% Units 0%

Statement of monthly remuneration of 3 workers Worker X Worker Y Wages @ Paise/unit 0 Dearness Allowance p.m. House Rent Allowance p.m. Additional Production bonus @ 5 Rs. For production above % Total Wages 0

Worker Z 0 0

0 0

Try out the Sum

( A ) Number of Hours worked during year Less: Unproductive part of training hours Number of the effective hours worked ( B ) Contribution earned during year Contribution per effective hour ( C ) Contribution foregone on account of labour turnover ( D ) Amount of Profit Foregone on account of labour turnover 1 Contribution lost due to LTO Add: Labour Cost of unproductive hours 2 Sepration & Replacement Costs Sepration Costs Selection Costs Training Costs Amount of Profit foregone due to Labour Turnover

0 0

chargeable hours (A)

1 1 hours 0 0

Piece work with a guaranteed weekly wage for Standard Rs. per hour Rs. Rate per hour = Rs. 1 hours @ Rs. = Rs.

( B ) Rowan premium bonus wages for Time saved =

Bonus = Rate per hour = Rs. ( C ) Halsey Premium Bonus Plan Wages for 1 hours Bonus Rate per hour worked = Rs.

0 0 0 0 0

Weekly Wage Summary Number of Workers Average weekly wage rate Hours per week Dearness Allowance per month Hours per month Bonus (%/100) PF deduction on gross (%/100) Family pension fund from PF (%/100) E.S.I. contribution per worker

Allowed Statutory Leave per year with pay (weeks)

Add: Add: Less:

Wages Dearness Allowance Bonus Total (A) PF contribution Family Pension Fund E.S.I. Contribution Total (B) Net wages per week

0 0 0 0 0 0 0 0 0 0

Wages Dearness Allowance Bonus P.F. Contribution E.S.I. Contribution Leave Pay

Computation of Departmental Labour Costs 0 0 0 0 0 0.00 Total Labour Cost 0.00

Workers A B C

Output Efficiency Taylor System Merrick System Gantt System (Units) Earnings Cost per unit Earnings Cost per unit Earnings Cost per unit 1 0 0 0 1 0 0 0 1 0 0 0

(A)

Piece Work Plan Day rate Rs. Time taken to complete a job is Total payment under this plan

/hour hours 0

(B)

Halsey Plan Standard time Less: Time Taken Time Saved Wages Bonus Rs. Rs. 0 0 Hours Hours 0 Hours

(C)

Rowan Plan Wages Bonus Rs. Rs. 0 0

Particulars Materials Wages Overhead Factory Cost

Computation of Factory Cost Piece Work Plan Halsey Plan 0.00 0.00 0.00 0.00

Rowan Plan 0.00 0.00

Hours Dinesh Mahesh Ramesh Suresh 1 1 1 1

Rate per hour 1 1 1 1

Total 1 1 1 1

Ratio 2.5 2.5 2.5 2.5

Group piece work Individual Efficiency Total Earning

STATEMENT OF TOTAL EARNING Dinesh Mahesh Ramesh Suresh 75 75 75 75 75 75 75 75

Working Hours Productive Hours Rate per Hour

1 1

Actual Payment of wages per day Effective Rate per Hours If worker works for = 0.0

0 0.00 hours, wages to be paid