Question

The firm employs five workers at an hourly rate of R 2. During the week they worked for four days for a total period of 40 hours each and completed a job for which the standard time was 48 hours for each worker. Calculate the labour cost under the ‘Halsey Method’ and ‘Rowan Method’ of incentive plan payments.​

Answer 1

Answer:

Under Hasley method: 440

under Rowen method: 467

Explanation:

Hasley Method = (Hourly rate x Time taken) + (50 % x Time Saved x Hourly rate)

= (10 x 40) + (0.5 x 8 x 10)

= 440

Rowan Method = (Hourly rate x Time taken) + (Time Saved x Time Taken)/ Time Allowed x Hourly Rate

= (10 x 40) + (8 x 40) /48x 10

=467