Reference no: EM132567312

Bolan Engineering limited produces Camp shaft for Millat Tractors limited. The standard production is 40 units per hour with a Base wage of Rs. 300 per hour for the payment of wages to their workers for their Camp shaft plant. The company employs 5 workers in Camp shaft plant.

Each worker worked 25 days @8 hours per day in the month of March, 2020.

The each worker produced the following actual production during the month of March, 2020:

Name of workers Actual Outputs

of each worker "Units"

Muhammad Hassan 8,800

Muhammad Tayab 8,600

Zafar Junaid 9,000

Muhammad Ayuab 8,000

Marium khalid 7,500

Required:

Question 1: A schedule showing total labor cost for each worker, labor cost per unit for each worker, and total labor cost for Camp shaft Plant in the month of March, 2020 , if Company uses 80% Time saved., i.e., 80% Bonus Plan.

Question 2: From the three popular methods of labor remunerations. i.e., time rate system, pieces rate system and incentive schemes, which system would you recommend to management of Bolan engineering limited as a Cost and Management accountant? Give in support of recommended system with proper justifications and advantages to management.