Calculate remuneration of employee of an organisation, Cost Accounting

Calculate Remuneration of Employee of an Organisation

Based on the data underneath that you are necessary to calculate the remuneration of all employee like determined with each of the specified methods

i. Hourly rate

ii. Basic piece rate

iii. Individual bonus scheme whereas the employee obtains the bonus in proportion of the time saved to time permitted

 Name of employee    

Salmon

Roala  

Pike

 Units produced           

270     

200     

220

 Time allowed in minutes per unit

10       

15       

12

 Time taken (hours)                            

40

38       

36

 Rate per hour (Kshs)              

125     

105     

120

 Rater per unit (Kshs)              

20

25

24

Solution

 

Salmon

Roala

Pike

 i. Hourly rate

40 x 125

38 x 105

16 x 120

 

= 5000

= 3990

= 4320

 ii. Piece rate

Salmon

Roala  

Pike

     Gross wage

270 x 20

200 x 25

220 x 24

 Therefore regular wage

= 5,400

= 5,000

= 5,280

 iii. Bonus scheme

Salmon

Roala  

Pike

 Time saved

 

 

 

 Time allowed

(270x100)/60

(200x15)/60

(220 x12)/60

 

= 45 hours

= 50 hours

      = 44 hours

 Time taken

   40 hours

   37 hours

         36 hours

 

     5 hours

   12 hours

           8 hours

Bonus time =  (Time taken/ Time allowed) x total time saved

 

Salmon           

Roala  

Pike

 

(40 / 45) * 5

(38 / 50) * 12

(36 / 44)*8

 

= 4.4

= 9.12

= 6.55

    Bonus Pay          

4.4x125 = 550

9.12x105 = 958

6.55x120= 786

     Total pay

 

 

 

 = Gross pay + Bonus

5,000 + 550

3990 +958

4320 + 786

 Using hourly rate

= 5550

= 5958

= 6066

Posted Date: 2/5/2013 6:11:03 AM | Location : United States







Related Discussions:- Calculate remuneration of employee of an organisation, Assignment Help, Ask Question on Calculate remuneration of employee of an organisation, Get Answer, Expert's Help, Calculate remuneration of employee of an organisation Discussions

Write discussion on Calculate remuneration of employee of an organisation
Your posts are moderated
Related Questions
Under what conditions is a market-based transfer price optimal?

Changes in Variable Cost and Selling Price per Unit The contribution sales ratio is affected by any change in variable cost or selling price per unit. This ratio is a mea

Total Variable Overheads Variances  If Variable Overhead Expenditure Variance =  Shs.1, 330 Variable Overhead Efficiency Variance = Shs.320 Then total variable overheads

Objectives of Budgetary Planning 1) Coordination The budgetary process needs that visible detailed budgets are developed to cover every activity, function or department

Multiple Versus Single Overhead Rates, Activity Drivers Deoro Company has identified the following overhead activities, costs, and activity drivers for the coming year: Deoro p

USES O F CVP ANALYSIS 1. .It allows preparation of flexible budgets. 2. It provides help in forecasting accurate profit. 3. It aids in formulating price policy. 4

draw up statements of affairs to show the profit or loss for the year

Master Designs Company has cash flows for operating activities of $350,000. Cash flows used for investments in property, plant, and equipment totaled $65,000, of which 70% of this

Reasons for Overhead Variances Useful for Control Reasons Overhead variances are essentially a book balancing exercising giving an arithmetic reconciliation between the actual

XYZ Co. manufactures automation machinery according to customer specifications.  The company is relatively new and has grown each year.  XYZ Co. operated at about 75% of practical