Question

a) On the basis of following information:
Standard production: 16 units per hour
Normal time rate: Rs. 8 per hour
Differential to be applied:
• 80% of piece rate below standard
• 120% of piece rate at or above standard
In a 9 hours day, Reshma produced 108 units and Meena produced 150 units: Calculate the
earnings of
Worker Reshma and Meena on:
Straight piece basis,
Taylor's differential piece rate system​

Answer 1

Answer:

Standard production per hour = 16 units.

Standard production for 9 hours = 16 units × 9

= 144 units.

Wage Rate per hour = ₹8

Piece rate = ₹8/16 units = ₹0.5

Calculation of differential piece rate -

Below average = ₹0.5 × 80% = ₹0.4

Above average = ₹0.5 × 120% = ₹0.6

Calculation of total earnings of workers -

Under straight piece rate system -

Reshma = 108 units × ₹0.5 = ₹54

Meena = 150 units × ₹0.5 = ₹75

Under Taylor's differential piece rate system -

Reshma = 108 units × ₹0.4 = ₹43.20

(As she produced below average production)

Meena = 150 units × ₹0.6 = ₹90

(As she produces above average production)

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