cost of direct material is rs 2 010 works overhead is at 20 of the prime cost sellin 618399

Two fitters, a labourer and a boy undertake a job of piece for a rate of Rs. 1,290. The time spent by each of them is 220 ordinary working hours. The rates of pay on a time-rate basis are Rs. 1.50 per hour for each of the two fitters, Re. 1 per hour for the labourer and Re. 0.50 per hour for the boy.

Now calculate the following:

The amount of piece-work premium and the share of each worker, when the piece-work premium is divided proportionately to the wages paid.

The selling price of the above job on the basis of the following additional data:

Cost of direct material is Rs. 2,010, works overhead is at 20% of the prime cost. Selling overhead at 10% of the works cost and profit at 25% on the cost of sales.