Cost and Management AccountingQuestion 5429 of 251
All Questions

13. The data pertaining to the worker C in a factory depicts that he is paid at a rate of ` 100 per hour and a week comprises 48 hours for a 6 days’ work. The allowed absence time is 15 minutes per day for maintenance etc. The job card of C indicates, his chargeable time is scattered for 2 different jobs J1-21 hours and J2-24 hours. Any unaccounted time is attributable for power failure. Calculate cost of normal idle time and abnormal idle time.

Options

A` 100 and ` 150
B` 150 and ` 150
C` 150 and ` 100
D` 100 and ` 100
For any discrepancies in this question, email contact@cadada.in

Correct Answer

✅ Option A — ` 100 and ` 150

All Options:

  • A` 100 and ` 150 ✓
  • B` 150 and ` 150
  • C` 150 and ` 100
  • D` 100 and ` 100

Ad

Detailed Solution & Explanation

The standard time allowed for C is:
Standard Time=12,500 units×2.5 hours/unit=31,250 hours\text{Standard Time} = 12,500 \text{ units} \times 2.5 \text{ hours/unit} = 31,250 \text{ hours}
Actual time taken = 25,600 hours.
Time Saved=31,250−25,600=5,650 hours\text{Time Saved} = 31,250 - 25,600 = 5,650 \text{ hours}
Wages under Rowan plan is calculated as:
Total Earnings=(Actual Hours×Hourly Rate)+(Actual HoursStandard Time×Time Saved×Hourly Rate)\text{Total Earnings} = (\text{Actual Hours} \times \text{Hourly Rate}) + \left(\frac{\text{Actual Hours}}{\text{Standard Time}} \times \text{Time Saved} \times \text{Hourly Rate}\right)
Total Earnings=(25,600×30)+(25,60031,250×5,650×30)=7,68,000+1,38,854.4=₹9,06,854.4\text{Total Earnings} = (25,600 \times 30) + \left(\frac{25,600}{31,250} \times 5,650 \times 30\right) = 7,68,000 + 1,38,854.4 = ₹9,06,854.4
Effective Hourly Earnings Rate=Total EarningsActual Hours=₹9,06,854.425,600 hours≈₹35.42 per hour\text{Effective Hourly Earnings Rate} = \frac{\text{Total Earnings}}{\text{Actual Hours}} = \frac{₹9,06,854.4}{25,600 \text{ hours}} \approx ₹35.42 \text{ per hour}
Hence, **Option A** is the correct answer.

More Questions from Cost and Management Accounting

The value of N\displaystyle N in N!+17!=18!\displaystyle N! + \frac{1}{7!} = \frac{1}{8!} is

A person can go from place 'A' to 'B' by 11 different modes of transport but is allowed to return to 'A' by any mode other than the one earlier. The number of different ways in which the entire journey can be completed is:

If a man travels from place A to B in 10 ways then by how many ways can he come back by another train?

If n!10(n−1)!=(n−1)!(n−3)!\displaystyle \frac{n!}{10(n-1)!} = \frac{(n-1)!}{(n-3)!} find 'n'.

Which of the following is a correct statement.

nP3=2⋅nP2\displaystyle ^nP_3 = 2 \cdot ^nP_2. Find n\displaystyle n.

Ready to Master Cost and Management Accounting?

Practice all 251 questions with instant feedback, earn XP, track your streaks, and ace your CA Foundation exam.

Start Practicing — It's Free