Assignment-1 Due date 4 Dec 2014

[+Shakeel Ahmad]

Assignment
Hibco & Partners, a Quebec-based public accounting partnership, specializes in audit services. Its job-costing system has a single direct-cost category (professional labor) and a single indirect-cost pool (audit support, which contains all costs of the Audit Support Department). Audit support costs are allocated to individual jobs using actual professional labor-hours. Hibco & Partners employs 3 professionals to perform audit services. Management of the company has provided different categories of bonus. It can fixed different level of bonus according to minimum time utilization on job.
The standard time for the completion of a certain job is fixed at 50 hours. Normal wages are paid to the workers according to time rate, which is Rs.20 per hour. The plan of payment of bonus is as under:
For 1st 10% saving in time 20% of time saved
For next 30% saving in time 40% of time saved
For next 20% saving in time 30% of time saved
For balance 5% of time saved
REQUIRED:
1. Compute total earning of Mr. X, Mr. Y and Mr. Z.
2. Mr.X worked 55 hours, Mr.Y worked 40 hours and last Mr. Z worked For 15 hours of professional labor time. Compute the per hour earning of each of professional using bonus rate by segregating them into categories. Explain who worked more efficiently.
3. Why the total earning of employee’s job decrease while an employees worked more efficiently than others (completed task in minimum time).
Note: Provide necessary computations to support your solution

[Attiya Zulfiqar]

This is answer is ri

[Adeel Baig]

Please guys help me,,, I don't understand where to start & where to finish

[Adeel Baig]

O bhai koeee hai.. Kisi aur ko bhi ye assignment mili hai k sirf mujhay hi mili hai

[Adeel Baig]

I am not sure whether this solution is correct or not, so plz! plz! plz! friends help me & guide to solve this assignment.

[Nadia Chaudhary]

Question 1

Mr. X

Wages Rate per Hour Rs. 20

Time allowed for the job 50 hours

Time Taken 55 hours

Total Earning 55 x 20 = 1,100.00

Mr. Y

Wages Rate per Hour Rs. 20

Time allowed for the job 50 hours

Time Taken 40 hours

Total Earning 40 x 20 = 8,00.00

Mr. Z

Wages Rate per Hour Rs. 20

Time allowed for the job 50 hours

Time Taken 15 hours

Total Earning 15 x 20 = 300.00

Question 2

Mr. X

Bonus Rate= Time allowed – Actual Time taken x 100

Time Allowed

= 50-55 x 100

50

Bonus Rate= -10%

Gross Earning

Basic Pay 55 x 20 = 1,100

Bonus Pay 1,100x -10% = -110

990

Effective Rate of Earning = 990 /55 hours = Rs. 18

Mr. Y

Bonus Rate= Time allowed – Actual Time taken x 100

Time Allowed

= 50-40 x 100

50

Bonus Rate= 20%

Gross Earning

Basic Pay 40 x 20 = 800

Bonus Pay 800 x 20% = 160

960

Effective Rate of Earning = 960 /40 hours = Rs. 24

Mr. Z

Bonus Rate= Time allowed – Actual Time taken x 100

Time Allowed

= 50-15 x 100

50

Bonus Rate= 70%

Gross Earning

Basic Pay 15 x 20 = 300

Bonus Pay 300x 70% = 210

510

Effective Rate of Earning = 510 /15 hours = Rs. 34

Any body can guide how to use the time rate .

[Adeel Baig]

Nadia aap ne bonus rate ko basic pay se direct multiply ker diya... jab k question main tu ye kaha hai k for 1st 10% saving in time ho agar tu 20% of time saved bonus dena hai yani 10% saving in time is 50 x 10/100 = 5 hours jis ki amount bani 5 x 20 = Rs. 100 phir is ka 20% bonus dena hai jo k Rs. 20 aata hai aur per unit bonus 20/5 = Rs. 4 hai.

Aur phir isi tarah 30% saving in time

15 hours @ Rs. 20 = Rs. 300 x 40% = Rs. 120 Bonus Amount

Bounus Amount per Hour = 120/15= Rs. 8

Aur phir isi tarah 20% saving in time

10 hours @ Rs. 20 = Rs. 200 x 30% = Rs. 60 Bonus Amount

Bounus Amount per Hour = 60/10= Rs. 6

Aur finally isi tarah Balance 40% saving in time

20 hours @ Rs. 20 = Rs. 400 x 5% = Rs. 20 Bonus Amount

Bounus Amount per Hour = 20/20= Re. 1

[Nadia Chaudhary]

can you please upload the final solution so i can tally with mine and do the changes

[Adeel Baig]

final solution meray mutabiq jo banta hai wo page # 1 per Jpeg format main , main ne upload ker diya hai.. Lakin mujhay bhi believe nahein k whether is it correct or not

[Naeemayazkhan]

Question 3

It attributes the job losses to employers increasing prices to deal with the higher wages , which would lower demand and therefore their need more workers as well as to some employers substituting machines or technology for workers  due to the higher cost of wages .

But business may respond to a higher and policy research, john Schmitt argues that they can benefit from improved efficiency and lower turnover a higher wages may lead employers to push ,the majority to work harder ,which can be preferable to cutting hours or workers . in fact ,the majority of fast food restaurants in Georgia and Alabama said they would respond to a minimum wages increase with higher performance standards . 

[+ M.Asif]

According to my knowledge my solution is as follow

Total earning of MR X

Working completion hours Mr. X is = 55

But fixed for job only 50hours @ 20

So he will be paid 50x20                = Rs.1000

 

Total earning of MR Y

Working hours(40) wages 40x20 = 800

His Working hours 40 out of 50hours

Saving in time 10hr out of 50hr so, = 50x40/100= 20% saving of time

First 10% saving hours        = 5x04 = Rs.20

For next 10% saving hours = 5x08 = Rs.40

                                                           Rs.60

Wages for working hours= 800

Add bonus of Rs.              =     60

  Total earning of Mr Y     = 860

 

Total earning of MR Z

wages 15hoursx20 = 300

His Working hours 15 out of 50hours

Saving in time 35hr out of 50hr so, = 35x100/50= 70% saving of time

First 10% saving hours = 5x04 =           Rs.20

For next 30% saving hours = 15x08 = Rs.120

For next 20% saving hours = 10x06 = Rs.60

For balance (10%)out of 70%=5x01= Rs. 05

                                 Bonus              Rs.205

Wages for working hours= 300

Add bonus of Rs.              =  205

 Total earning of Mr Z     = 505

                 

[Adeel Baig]

Asif bhai Mr. X ki earning 55 hours x 20 = Rs. 1100 banti hai, lakin aap ne 50 x 20 = Rs. 1000 li hai,,, ye point zara clear karain plz.. aap ne 55 hours ki bajaye 50 hour q liye Mr. X k liye... Please clear and guide me

[zoha khan]

which one is correct solution????