labour------------ costing

kanika (ipcc student) (62 Points)

18 March 2010  

The unit has a strength of 20 workmen worked for 300 working days of 8 hours each with

half an hour break based on the earlier years trend, it is forecast that average

absenteeism per workman would be 8 days, in addition to the eligibility of 30 days annual

leave.

The following details regarding actual working of the unit are available for the year ending on

31st March, 1998.

(i) The factory worked 2 extra days to meet the production targets, but one additional

paid holiday had to be declared.

(ii) There was a severe breakdown of a major equipment leading to a loss of 300 man

hours.

(iii) Total overtime hours (in addition to 2 extra days worked) amounted to 650 hours.

(iv) The actual average absenteeism per workman was 8 days.

(v) Basic rate is Rs. 10 per hour and overtime is paid at double rate. You are required

to calculate.

(a) Actual working hours of the unit.

(b) In Cost Accounting how would you treat the wages of workmen for (ii) & (iii

plz tell me the solution.

thanks in advance