Finance Numericals

Wages is an amount which is given to a worker for his work. It act as a motivational tool which help worker to work efficiently and effectively. In other hand if it is act as a motivational tool then it is also act as a tool to demotivate the workers if it is not distributed efficiently among them. If the efficient worker does not get the wage according to his work it demoralizes him and it affects his work performance in future. So, there is a three types of wage rate system methods company uses to paid workers properly. With the help of this method company decides the wage rate according to which company paid to workers. 1.      Time wage rate system:  Under this system the wages decided according to the working hours. If the worker works 5 hours then the wage rate is multiply with the working hour that is 5 hours and then the amount is paid to worker as his wage. In this system the quantity of goods produced is doesn't matter. A fixed wage rate is given to worker based to

Example: Find the total cost of a product with the help of given information: Raw material Rs.6 per unit, Labour cost Rs. 10 per unit, direct expenses Rs. 8 per unit, Office and administrative expenses Rs. 1, 00,000, selling and distribution expenses Rs. 2, 35,000. Total unit produced 7000 units. Solution:                Statement of cost Particulars Cost per unit Total cost Raw material 6 42,000 Labour cost 10 70,000 Direct expenses 8 56,000                                                                   Prime cost   1,68,000 Add: office and administrative expenses   1,00,000                                                                  Office cost   2,68,000 Add: Selling and distribution expenses   2,35,000