Question: Q . 8 . ( a ) A manufacturing organization operates an incentive scheme on slab rates based on cost of production as shown below
Qa A manufacturing organization operates an incentive scheme on slab rates based on cost of
production as shown below :
Three workers X Y and Z take hours, hours and hours respectively to produce units of the
product and their respective wage rates are Rs Rs and Rs per hour. The material costs
Rs per unit and the overhead recovery rate is @ of cost of wages. The standard cost of
production per unit is determined as Rs per unit.
What is the amount of incentive earned by each of these workers and what is the actual cost of
production per unit in each case?
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