Calculate the wages of a worker according to Taylor differential piece wage system Standard Producti...........

Costing - Phase (I & II) Basics of Cost Control and Analysis

Calculate the wages of a worker according to Taylor differential piece wage system:

Standard Production :1000 pieces

Actual Production: 800 pieces

Standard Rate per Piece: Rs. 5/-

Rs. 7200

Rs. 6000

Rs. 3200

None of the above

Taylor differential piece wage system has laid down three types of rates:

For efficient worker, the rate is 120% of Normal Piece rate.

For inefficient worker, the rate is 80% of Normal Piece rate.

For 100% efficient worker, the rate is normal piece rate.

In the given problem, worker is an inefficient worker, so, the wages will be 800 x 5 x 80%= 3200/-

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