Question

W
167
DIRECT LABOUR AND DIRECT EXPENSES
Illustration 3.9. In a factory bonus to workmen is paid according to the Rowan system.
The standard time for a job is 80 hours and the hourly rate of wages is Rs. 2.
The prime cost of a job performed by one worker is Rs. 350 and that by another is
Rs. 337.50. The cost of materials in each case is Rs. 200.
Calculate the amount of time taken by the first worker to complete the job.
Solution :
(1) Let x be the number of hours taken by each worker to complete the job.
na to Rowan Plan the earnings shall be​

Answer 1

Answer:

Prime cost = Direct Material + Direct Labour + Direct Expenses = `52,500. Overhead ... Standard time for job ... job is 40 hours and the normal rate of wages is ` 1.25 per hour.