Labour Turnover
(i) Separation Rate Method = Number of separations ina period ÷ Average number of workers in the period x 100
(ii) Replacement Method = Number of replacements in a period ÷ Average number of workers in the period x 100
(iii) Flux Rate Method = No. Of separations + No. Of replacements ÷ Average number of workers in the period x 100
No. Of separations + No. Of replacements ÷ 2 / Average of workers in the period x 100
(iv) Equivalent Annual Turnover Rate = Turnover rate x 365 ÷ No. Of days in the relevant period x 100
(v) Valuation of closing stock in units = cost of production ÷ units produced x No of closing stock units.
Remuneration and Incentives
1. Halsay wier scheme = Time taken x howely rate + ( Time saved x Howely rate x 30% )
2. Barth’s variable sharing plan = Howely rate √ standard time x Actual time
3. Bedeaux’s point premium system = Time taken x ( Howely rate x 75/100 x points saved x Basuc rate per hour ÷ 60 )
Incentive Plans:
4. Halsey Plan: Total Earnings = Time taken x Hourly rate + ( Time saved x Rate x 50%)
5. Rowan Plan: Total Earnings = Time taken x Hourly rate + Bonus
Bonus = Time saved ÷ standard time x time taken x Hourly rate.
6. Barth Scheme = Hourly rate x √ Standard hours x hours worked
Obsorbtion of overhead:
1. Overhead rate = overhead Expenses ÷ Total quantum of base selected
2. Actual overhead rate = Actual overhead incurred during a period ÷ Actual quantum or value of the base selected
3. Blanket overhead rate = overhead cost of the entire factory ÷ Total quantum of the base selected
4. Preduemined overhead rate = Budgeted overhead Expenses for the period ÷ Budgeted base of the period
5. Treatment of over / under obsorption overhead supplementary rate = Amount of over / under obsorption of overhead ÷ Total of base
Piece Rate System:
1. Straight Piece Rate System ( ordinary piece rate ) = No. Of units produced x Rate per piece
2. Taylor’s differencial piece rate system: –
(a) Output below standard output :-
Piece rate = No of units produced x (straight piece rate x 80% )
(b) Output above standard output :-
Piece Rate = No of units produced x ( straight piece rate x 120% )
3. Merricks multiple or Differential price :-
(a) Output below 83% of standard output :-
Piece rate = ordinary piece rate
(b) Output between 83% to 100% of standard output :-
Piece rate = No of units produced x ( rate per piece x 110% )
(c) Output above 100% of standard :-
Piece rate = No of units x ( rate per piece x 120% )
4. Gantt’s Task :-
(a) Earnings = Standard time x Hourly rate – ( below 100% per )
(b) Earnings = ( standard time x Hourly rate) + 20% of ( standard time x Hourly rate) ( performance at 100% )