Question

(A) Time and Piece Wages
25. Raj works in a factory where the following partic
Normal rate per hour - Rs. 1.50
Normal piece rate = 20% more of time rate
Expected output 20 units per hour.
Raj produces 157 units in an 8 hour day.
Calculate his wages for the day on:
a) Time basis and
b) Piece basis​

Answer 1

Answer:

a . 8 hrs× rs 1.50 =Rs 12

b 157 units × Rs 0.09= Rs.14.13

Explanation:

b normal piece rate :- rs 1.50/20 units = rs 0.075

now Rs0.075 +20% :- Rs0.09

Answer 2

Concept:

Time rate System

• A time rate system bases worker remuneration on the amount of time they invested in producing an output.
• Other names for the Time Rate System are Time Work, Day Work, Day Wages, and Day Rate. It is the most traditional form of payment. The time rate system is a method of paying employees based on the amount of time they spend in the production.
• In this system, wages are paid to workers and employees based on the amount of time they have worked rather than the quantity of output they have generated. Depending on the type of job, the wage rate is set on an hourly, daily, weekly, fortnightly, or monthly basis.
• Wage = Hours worked x wages per hour

Piece Rate System

• This form of wage payment bases worker compensation on the number of units of output generated.
• The workers' time is not taken into account by this approach.
• The piece rate system is a way to pay employees based on how many units are produced or jobs are finished.
• It is sometimes referred to as output- or result-based payment.
• For each created unit of production, the piece rate system pays salaries at a predetermined piece rate.
• Wages = Output x Piece rate

Given:

• Normal rate per hour - Rs. 1.50
• Normal piece rate = 20% more of time rate
• Expected output =20 units per hour
• Produced 157 units in an 8 hour day.

Find: wages on time basis and piece basis

Solution:

• Time Basis

Wages = 8hrs x 1.5

Wages = 12

• Piece basis

Wages = 157 units x (1.5+20%)

Wages = 157 x 1.8

Wages =282.6

We can say that Raj earned more when he was paid on Piece basis.

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