Calculate remuneration of employee of an organisation, Cost Accounting

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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


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