From the following information, calculate the incomes of employees X and Y under the straight bit rate system and the Taylor differential piece rate system. Rs. 1.80 per hour normal rate 20 Seconds is the standard time per unit. To be used as a differential: 80% of piece rate is below normal, while 120 percent is at or above standard. Worker X generated 1,300 units in an 8-hour day, whereas worker Y produced
Variance Analysis
In layman's terms, variance analysis is an analysis of a difference between planned and actual behavior. Variance analysis is mainly used by the companies to maintain a control over a business. After analyzing differences, companies find the reasons for the variance so that the necessary steps should be taken to correct that variance.
Standard Costing
The standard cost system is the expected cost per unit product manufactured and it helps in estimating the deviations and controlling them as well as fixing the selling price of the product. For example, it helps to plan the cost for the coming year on the various expenses.
From the following information, calculate the incomes of employees X and Y under the straight bit rate system and the Taylor differential piece rate system.
Rs. 1.80 per hour normal rate
20 Seconds is the standard time per unit.
To be used as a differential: 80% of piece rate is below normal, while 120 percent is at or above standard. Worker X generated 1,300 units in an 8-hour day, whereas worker Y produced 1,500 units.
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