. Both direct and indirect labour of a department in a factory are entitled to...
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Accounting
. Both direct and indirect labour of a department in a factory are entitled to production bonus in accordance with a Group Incentive Scheme, the outlines of which are as follows: (a) For any production in excess of the standard rate fixed at 10,000 tonnes per month (of 25 days) a general incentive of Rs. 10 per tonne is paid in aggregate. The total amount payable to each separate group is determined on the basis of an assumed percentage of such excess production being contributed by it, namely @ 70% by direct labour, @ 10% by inspection staff, @ 12% by maintenance staff and @ 8% by supervisory staff. (6) Moreover, if the excess production is more than 20% above the standard, direct labour also get a special bonus @ Rs. 5 per tonne for all production in excess of 120% of standard. (c) Inspection staff are penalised @ Rs. 20 per tonne for rejection by customer in excess of 10% of (d) Maintenance staff are also penalised @ Rs. 20 per hour of breakdown. From the following particulars for a month work out the production bonus earned by each group: (a) Actual working days : 20 (b) Production : 11,000 tonnes (c) Rejection by customer : 200 tonnes. (d) Machine breakdown : 40 hours. production
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