Following are the particulars for April, 2002 relating to four employees working in Department M of a

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Following are the particulars for April, 2002 relating to four employees working in Department ‘M’ of a factory, exclusively for Job. No. 120.

The normal working hours per week of six days are 48, or 8 hours per day. Sundays are paid holidays.
(There were no other holidays during the month).
Provident Fund contribution was 8% of monthly wages by employee.
Provident Fund contribution was 8% of monthly wages by employer.
Employee State Insurance Contribution was 3% of monthly wages by employee and 5% of monthly wages by employer.

From the foregoing data, calculate:

(a) Net wages payable by the employer for the month;
(b) The total amount of Provident Fund contribution to be deposited by employer:
(c) Employee State Insurance contribution to be deposited by employer;
(d) Total labour cost to the employer for the month of April, chargeable to the job; and
(e) The total cost of the job requiring materials is valued at Rs. 60,000 and overheads at 50% of prime cost.

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Cost Accounting

ISBN: 9780070221628

4th Edition

Authors: Jawahar Lal, Seema Srivastava

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