Standard Output in 12 hrs is 48
Actual output in 12 hrs is 42
Time Rate @ 7.50 per hour
According to the emerson plan if the efficiency is more than 662/3 to 100%, A bonus increasing from 0.01% to 20% above basic wages on 100% efficiency.
In the text book, it has been calcuated that the bonus efficiency percentage is 7.56 in case of 87% of efficiency, but no idea how they have calcuated the same.
Plzz Help me
sorry
The rate of bonus at various levels of efficiency is calculated on the basis of table (as we have for present value).
Some values are as under :
Efficiency Bonus as % of
Wages earned
on time basis
67 0.01
70 0.22
80 3.27
87 7.56
90 9.11
100 20.00
110 30.00
Please refer M.P.Gupta for CA PCC\IPCC course - Chapter Employees Cost (Labour).
CAclubindia
