Flexible budgets and the motivational role of budgets Club Atlantic is an all-weather holiday complex providing holidays throughout the year. The fee charged to guests is fully inclusive of accommodation and meals. However, because the holiday industry is so competitive. Club Atlantic is only able to generate profits by maintaining strict financial control of all activities. The club’s restaurant is one area where is a […]

From the following particulars supplied by the personnel department of a firm, calculate labour turnover Total no. of employees at the beginning of the month 2,010 No. of employees who are recruited during the month 30 No. of employees who left during the month 50 Total no. of employees at the end of the month 1,990

The following information relates to labour costs for the past month: Budget Labour rate £10 per hour Production time 15 000 hours Time per unit 3 hours Production units 5000 units Actual Wages paid £176 000 Production 5500 units Total hours worked 14 000 hours There was no idle time. What were the labour rate and efficiency variances? Rate variance Efficiency variance A £26 000 […]

Raghavendra Metal Company gives the following information: No. of employees at the beginning of the year 200 No. of employees at the end of the year 240 No. of employees resigned 20 No. of employees discharged 5 No. of employees replaced 18 Calculate the labour turnover by applying three methods

Standard direct labour cost of one unit of product Q (0.25 hours x $12.00 per hour) is $3.00 The eight employees who make product Q work a seven-hour day. In a recent three-day period, result were as follows: Actual units produced 650 units Actual wages cost $2275 During this period, there was a power failure. This meant that all work had to stop for 2 […]

A machinist employed in a factory which works for six days in a week is paid Rs. 50 per day. Plus DA at 60% of the basic wages. He is allowed to take 30 minutes off for lunch during his 8-hour shift. During a week, his card showed that his time was chargeable to: Job No. 1 10 hours Job No. 2 15 hours Job […]

G Ltd repairs electronic calculators. The wages budget for the last period was bases on a standard repair time of 24 minutes per calculator and a standard wage rate of $10.60 per hour. Following the end of the budget period, it was reported that: Number of repairs 31 000 Labour rate variance $3100 (A) Labour efficiency variance Nil Based on the above information, the actual […]

From the following particulars, find the amount of cash required for the payment of wages in a factory for a particular month: (a) Normal wages 20,500 (b) Overtime wages 2,200 (c) Leave wages 1,700 (d) Deduction of employee’s share to ESI 500 (e) Deduction of employee’s contribution to PF 1,600 (f) House rent is to be recovered from 30 employees @ Rs. 300 per month

Calculate the amount of wages and bonus earned by this worker under Halsey–Weir plan: Name Surrender Job commenced Monday 23 September 8 a.m. Job finished Saturday 28 September 1 p.m. Quantity of pieces of work given out = 638 Quantity of pieces of work passed = 600 Worker’s rate = 50 paise per hour Time allowed = 10 pieces per hour Bonus = 30% of […]

A company was incorporated on 1 August 2010 in order to purchase a running business from 1 April 2010. The following particulars are available from its records: (i) Total sales for 2010–11: 2,40,000 (ii) Sales from 1 April 2010 to 31 July 2010 60,000 (iii) Gross profit for the whole year 90,000 (iv) Total expenses of 2010–11 (including director’s fees 3,000) 75,000 (v) Company’s share […]