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Query

Nirav (Accountant) (595 Points)

29 September 2010

Hello friends......I have a query related to costing (Labour)

Suppose, there are two workers "A" and "B".

Company allowed 10 hours to complete a particular job. And wage rate is Rs.10 per hour.

Time taken by worker "A" is 2 hrs. And "B" took 20 hours to complete a job.

It can be seen that worker "A" is efficient worker than "B" as he has completed in less time.

But following halsey system, worker "A" will get basic wage of Rs.20 and bonus Rs.40. total earning of "A" is 60.

Basic wage of "B" is 200. Bonus will be NIL. Total earning of "B" is Rs.200.

How can an efficient worker get less then inefficient worker??

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4 Replies

abhishek (CA FINAL) (274 Points)
Replied 29 September 2010

Hi ..Nir..

You have asked a good question.

Indeed A is more efficient than B and if you look at the wages they earn prima facie it appears that A who is more efficient worker than B is getting less wages, but that is not correct.

A has worked for 2 hrs and he gets Rs 60 so effecively he gets Rs 30 per hour ,but B get Rs 200 for 10hrs so he gets wages at normal wage rate i.e Rs 10 per hour .So actually A who is more efficient is getting more wagerate than B.

Also if you look at the advantages of Halsey system you will find that this system is gud for those who work efficiently by saving time but it doesnot harm those who work slowly (in this case Worker B )since slow workers get the wages at normal rate.

I hope this answers this question.

GOD BLESS!

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sucheta (cs inter and CA FINAL student) (598 Points)
Replied 29 September 2010

yes i agree with abhishek .Since A has worked for 2hrs and gets total earning of Rs 60 that means he is getting Rs 30 per hour and has worked for less time and getting more while on the other hand B is getting Rs 10 per hour and as well as he has worked for more hrs.So comparatively A is more efficient than B.

So i totally agree with abhishek

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Nirav (Accountant) (595 Points)
Replied 29 September 2010

thank you friends.

Santhosh Poojary (SIEMPRE AHÍ PARA TI) (15607 Points)
Replied 29 September 2010

Originally posted by : sucheta
	yes i agree with abhishek .Since A has worked for 2hrs and gets total earning of Rs 60 that means he is getting Rs 30 per hour and has worked for less time and getting more while on the other hand B is getting Rs 10 per hour and as well as he has worked for more hrs.So comparatively A is more efficient than B. So i totally agree with abhishek