Cost and Management AccountingQuestion 5474 of 251
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13. In a mutual project, both Raj and Bhuvan are contributing their efforts, using identical materials. Raj receives a bonus based on the Rowan plan, while the Halsey plan determines Bhuvan’s bonus. The standard time allocated for the project is 150 hours. Raj completes the project in 90 hours, while Bhuvan finishes it in 120 hours. The normal hourly wage rate for Raj is ` 30. The total earnings for both workers are equal. Calculate the normal hourly wage rate to be paid to Bhuvan.

Options

A` 26.50
B` 24.00
C` 22.50
D` 28.00
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Correct Answer

Option A` 26.50

All Options:

  • A` 26.50
  • B` 24.00
  • C` 22.50
  • D` 28.00

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Detailed Solution & Explanation

Under the Halsey/Rowan wage incentive plans, Bhuvan's hourly wage rate is calculated based on the standard time, time taken, and total wages earned. The calculation yields a normal hourly wage rate of ₹26.50.
Hence, **Option A** is the correct answer.

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