Calculation of labour cost


Can anyone try try to solve my problem as i am not getting corect final answer.Please try.

From the following particular, you are required to work out the earning of a worker under:

(a)Straight piece rate  (b)Differential piece rate (c) halsey premium piece rate

weekly working hour-48hours

Hourly wage rate   Rs7.50

piece rate per unit     Rs3.00

Normal time taken per piece   20 minutes

Normal output per week      120 piece

Actual output  for the week        150 piece

Differential piece rate -80% of piece rate when output is below normal and 120% of piece rate when output is above normal.

Principle Internal Auditor

Hi Manish!!! i have tried to solve your problem below.I hope it is right.       

Straight Piece Rate Method :                     No of Piece* rate per piece

                                                                                     = 150 * 3


Differential Piece Rate Method:   Rate per unit    * No of :unit produced

                                                               = 3.60 (see W.N. 1) * 150

                                                               = 540Rs

working note 1: calculation of rate per piece

                            120% of piece rate if out put is above normal production

                           = 120% * 3 Rs ( As out put is 150 piece)

                           = 3.60Rs.

Hasley Primeum Piece Rate Method :    Hours worked * rate per hour+50% (standard time-hours worked) * rate perhour                                            = 50 * 7.50Rs. + 50% (50-40) * 7.50 Rs.                                               =50*7.50+5*7.50 =375+37.50                                                  =412.50Rs.                             

    I hope my ans is right. please reply me wether its right or wrong.




Hi I need help for catering service I will supply of labour (waiters) so labour sales tax free or taxable


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