Question: Q . 8 . ( a ) A manufacturing organization operates an incentive scheme on slab rates based on cost of production as shown below

Q.8.(a) 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 25 hours, 30 hours and 15 hours respectively to produce 10 units of the
product and their respective wage rates are Rs.6-, Rs.6.50?- and Rs.7?- per hour. The material costs
Rs.50?- per unit and the overhead recovery rate is @ 500% of cost of wages. The standard cost of
production per unit is determined as Rs.175/- 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?
 Q.8.(a) A manufacturing organization operates an incentive scheme on slab rates

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