Question

hello frnds i have doubt in accounts plzz ans to my question which was very difficut to solve it the question is for u here according to wage fund theory what is the formula of avg. wage rate ?

Answer 1

Step 1

Determine the total number of hourly employees within the organization. For example, assume the business has five employees.

Step 2

Determine the total hourly compensation paid to all hourly employees in the organization. Add the individual hourly rate of every hourly employee. For example, a company with five employees that earn $20, $25, $26, $30 and $50 per hour would add $20 + $25 + $26 + $30 + $50 = $151.

Step 3

Divide the total hourly compensation by the total number of hourly employees. Continuing the same example, $151 / 5 = $30.20. This figure represents the average or mean hourly rate for all employees within the organization.

Answer 2

avg. wage rate is equal to amount of wage fund / no. of laborers