Question:
Computation of wages under various methods of wage payment: In an engineering factory, wages are paid on a weekly basis (48 hours per week) at a guaranteed hourly rate of Rs 4.00. A study revealed that the time required to manufacture a product is 16 minutes. However, a contingency allowance of 25% is to be added to this for normal idle time, setting up time, etc. During the first week of June 1986, X produced 230 pieces. Compute X's wages for the particular week using the following methods of wage payment: (a) time rate, (b) piece rate with a guaranteed time rate, (c) Rowan's premium bonus scheme and (d) Halsey's premium bonus scheme.