Question

b) From the following particulars, you are required to prepare a statement

of lebour cost showing the cost per day of a 8 hours.

(i) Monthly salary Rs. 200

(ii) Leave salary 5% of salary

(iii) Employer’s contribution to provident fund 8% of (i) and (ii)

(iv) Employer’s contribution to State Insurance 2.5% of (i) and (ii)

(v) Pro-rata Expenditure on amenities to labour Rs. 17.95 per head,

per month

(vi) No.of working hours in a month 200.​

Answer 1

Answer:

(a) Basic salary

Rs 4 per day

(b) Dearness allowance (DA)

25 paise per every point over 100 (cost of living index for working class); current cost of living index is 800 points

(c) Leave salary

10% of (a) and (b)

(d) Employer's contribution to provident fund (PF)

8% of (a), (b) and (c)

(e) Employer's contribution to state insurance

2.5% of (a), (b) and (c)

(f) Expenditure on amenities to labour

Rs 20 per head per mensem