the amount of piece work premium and the share of each worker when the piece work pr 617209

Model: Piece-work premium and Selling price

2 fitters, one labourer and one boy undertake a job on piece for a rate of Rs.1,890. The time spent by each of them is 110 ordinary working hours. The rates of pay on time-rate basis are Rs. 3.00 per hour for each of the two fitters, Rs. 2 per hour for the labourer and Re 1.00 per hour for the boy.

You are required to calculate as follows:

1. The amount of piece-work premium and the share of each worker when the piece-work premium is divided proportionately to the wages paid.
2. The selling price of the above job on the basis of the following additional data:

Cost of direct materials = Rs. 3,110.

Work overhead at 20% of prime cost.

Selling overhead at 10% of works cost.

Profit at 20% on the cost of sales