The standard task completion time is 36 hours with 50 AeD per hour rate. Worker A completes the task in 27 hours, Worker B in 36 hours, and Worker C in 17 hours. Calculate their wage using Halsey and Rowan methods.
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
The standard task completion time is 36 hours with 50 AeD per hour rate. Worker A completes the task
in 27 hours, Worker B in 36 hours, and Worker C in 17 hours. Calculate their wage using Halsey and Rowan
methods.
The standard production is 40 units per day with 150 AED per unit rate.
At the end of the day, Worker D produced 68 units and Worker E produced 24 units.
Calculate their wage as per the following Merrick’s Plan:
1. Less than 65% standard production = Only basic wage is paid
2. 65% to 84% standard production = 10% of basic wage is paid as a bonus
3. 85% to 100% standard production = 15% of basic wage is paid as a bonus
4. More than 100% standard production = 20% of basic wage is paid as a bonus
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