Page 150 - DCOM202_COST_ACCOUNTING_I
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Cost Accounting – I
Notes
Particulars Amount – `
Wages for normal hours worked 20,500
Wages for overtime 2,200
Leave wages 1,700
Total Requirement 24,400
Less: Deduction of employees’ share of ESI: ` 500
Employees’ contribution to P.F. ` 1600
House rent to be recovered from
30 employees @ ` 10 per month ` 300
Total 2,400
Net requirement of cash 22,000
Illustration: Calculate the normal and overtime wages payable to a workman from the following
data.
Days Hours Worked
Monday 08
Tuesday 10
Wednesday 9
Thursday 11
Friday 9
Saturday 4
Total 51
Normal working hours – 8 hours per day
Normal rate per hour – ` 20.
Overtime rate: up to 9 hours in a day at single rate and over 9 hours at double rate or up to 48
hours in a week at single rate and over 48 hours at double rate whichever is more beneficial to
the workman.
Solution:
(a) Up to 48 hours per week at single rate: ` 20 x 48 = ` 960 Over 48 hours, at double rate:
` 40 x 3 = ` 120
Total = ` 1080
(b) Up to 9 hours in a day at single rate and over 9 hours at double rate
Days Number of Normal Wages Overtime Total Wages
Hours ` Wages ` `
Monday 8 8 x ` 20 = 160 _ 160
Tuesday 10 9 x ` 20 =180 1 x ` 40 =40 220
Contd…
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