Question: The workmen Vishnu and Shiva produced the same product using the same material. Their normal wage rate is also the same. Vishnu is paid bonus

The workmen Vishnu and Shiva produced the same product using the same material. Their normal wage rate is also the same. Vishnu is paid bonus according to the Rowan system, while shiva is paid bonus according to the Halsey system. The time allowed to make the product is 100 hours. Vishnu takes 60 hours while Shiva takes 80 hours to complete the product.

The factory cost for the product for Vishnu is Rs.

7,280 and for Shiva it is Rs. 7,600. You are required to:

(a) fi nd the normal rate of wages.

(b) fi nd the cost of materials.

(c) prepare a statement comparing the factory cost of the products as made by the two workmen.

Step by Step Solution

★★★★★

3.30 Rating (147 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Cost Accounting Questions!

Where is the critical value 1.96 found in the solution? I can 't seem to find it in Areas Under the Curve table when I look up 2.60. Alternatively I find 0.9953. Please see screen shot. 1 A...

I have attached the corresponding lessons for assignment 8, it usually includes practice problems at the bottom that look similar to the assignment. ASSIGNMENT 7 JOB ORDER COSTING Directions: After...

Two workmen, Vishnu and Shiva, produce the same product using the same material. Their normal wage rate is also the same. Vishnu is paid bonus according to the Rowan system, while Shiva is paid bonus...

Two workmen, Vishnu and Shiva, produce the same product using the same material. Their normal wage rate is also the same. Vishnu is paid bonus according to the Rowan System, while Shiva is paid bonus...

Two workmen, 'A' and 'B', produce the same product using the same material. Their normal wage rate is also the same. 'A' is paid bonus according to the Rowan system, while ' B ' is paid bonus...

.. ILLUSTRATION 8 Two workmen, 'A' and 'B', produce the same product using the same material. Their Normal wage rate is also the same. 'A' is paid bonus according to the Rowan system, While 'B' is...

In a factory, two workmen A and B produce the same product using the same material. Their normal wage rate is aiso the same. They are paid bonus according to Rowan system. The time allowed to...

Candys Candies started a business in 2012 with total assets of $50,000 and total liabilities of $40,000. At the end of 2012, Candys Candies total assets were $57,000, and total liabilities were...

Meritor is so pleased with the outcome from previous suggestions that the consultants are invited back for more work. The consultants now suggest a more complete robotic automation of the making of...

Ac.F100 Managerial Finance Workshop Questions (week 14) 1. You want to have 1.5 million saved on the day you retire. Explain how you can minimise the amount of cash you must invest in order to...

Prepare a comparative horizontal analysis of the change in each current asset account from Year 6 to Year 7. Express each change in dollars and the percentage each change represents. Comment on each...

Recognition of loss from spoilage. Arokia Electronics manufactures cell phone models in its Walnut Creek plant. Suppose the company provides you with the following information regarding operations...

Weighted-average method, spoilage. Chipcity is a fast-growing manufacturer of computer chips. Direct materials are added at the start of the production process. Conversion costs are added evenly...

FIFO method, spoilage. Refer to the information in Exercise 18-24. If you want to use Excel to solve this exercise, go to the Excel Lab at www.prenhall.com/horngren/cos113e and download the template...

The cash receipt for each month as follows: Month 1 Month 2 Month 3 Month 4 $ 4,000 6,000 5,000 7,000 22,000 Total sales Purchases Month 1 Month 2 $ 6,000 6,000 4,000 5,000 21,000 Month 3 Month 4...

Question C2 (20 marks) (a) Virtual Teach Limited has just paid a dividend of $1.50 per share. The company is expected to have a strong growth of 12% per annum for the next two years. However, after...

Friendly Candy Compary is a wholesale distributor of Candy. Small but steady growth in sales has been achieved by Friendly Candy Company over the past few years whila Candy prices have bien...