In a manufacturing unit, a multiple piece rate plan is operated as under: (i) Basic piece rate
Question:
In a manufacturing unit, a multiple piece rate plan is operated as under:
(i) Basic piece rate up to 85% efficiency;
(ii) 115% basic piece rate between 90% and 100% efficiency;
(iii) 125% basic piece rate above 100% efficiency.
The workers are eligible for a Guaranteed Day Rate which is equal to 75% efficiency and the piece rate is Rs. 2.00 per piece.
Compute the labour cost per piece at 5% intervals between 65% and 125% efficiency, assuming that at 100% efficiency 60 pieces are produced per day.
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To compute the labor cost per piece at different efficiency levels within the range of 65 to 125 wel...View the full answer
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