(5) Ascertaining overtime and idle time wages. Before uploading and sharing your knowledge on this site, please read the following pages: 1. (1) The worker may be rated high based on a single trait. This helps the management in assessing labour requirements, fixation of wage rates and introduction of incentive schemes. (20,000 units of 250gr each is 5000kg * 16 per kilo) Labour cost 100,000 Ideal labour cost is 360,000 - 180,000 - 80,000 = 100,000) So if we want the labour cost to be 100,000 and the rate is £ 15 per hour, we want the staff to spend 6667 hours on creating 20,000 products. (3) It helps in increasing wages and promotion opportunities. Idle time card is prepared to ascertain the idle time. This is your average labor cost per unit. If you want to calculate the additional cost of producing more units, simply enter your numbers into our Excel-based calculator and you’ll immediately have the answer. It is usable by companies which are large in size with more number of workers. Lv 4. Therefore, productivity is equal to 800/900 = 0.89 units per hour. The total of values of all the factors is the cash rate for each job. Sick days 6. (1) Manual methods of time keeping are as follows: This is one of the traditional methods of time keeping. It is the task of the personnel department to adhere to the budget and appoint additional workers only if sanctioned by competent authority. This department prepares the pay bill of the entire organisation. Ltd produces handmade soaps, cost of raw material per unit is $5, the labor cost of production per unit is $7, fixed cost for a month is $500, overhead cost per unit is … Moreover the precious time of the foreman is not wasted verifying the entries made by the workers. To calculate this metric, divide direct labor costs by total revenue for the period. Variable cost per unit is Rs and total fixed costs are Rs,. The costs related to finance, HR, IT is indirect variable cost. 3. time and material. This question should be answered by the Financial Planning expert as for as HR is concern we can only calculate the minimum wages of labor set by the Governemnt. Thus Job analysis is the study of the job and identifying the duties and responsibilities involved in the performance of the job, conditions for performance, nature of the job, qualifications to be possessed, opportunities and privileges. It is also the equivalent of the ratio between labour compensation per labour input (per hour or per employee) worked and labour productivity . The work done by a clerk should be verified by another clerk to have internal checks to ensure accuracy and to prevent frauds. The worker has to place the radial arm at the hole of his number and his time will be automatically recorded on a roll of paper against the worker’s number. is this part of a bizecon course? By doing so, they easily compare the per unit with the selling price the management is considering for the business and thereby determine the sustainability of the business. They are defined as the average cost of labour per unit of output produced. Before you can set a price for any item you manufacture, you must calculate the per-unit manufacturing cost.This product cost calculation includes elements such as the cost of raw materials, direct labor, and overhead costs.The price you set determines your profit margin.. A full-fledged pay roll shows the gross wages, various deductions and net wages payable. Bamboo Distillers manufacture a spirit called Cane Spirit. (6) Providing internal check system in payment of wages. The wages chargeable to different jobs are shown in the analysis sheet called wage analysis sheet. Terms of Use - (B) Engineering and Work Study Department. Ms. Samar this is very technical question and i would suggest to ask someone for Costing background as they calculates and workout on various cost. E.g.,- time required for walking from factory gate to the department, time lost in waiting for materials, tools, instructions, time lost due to break-down of machinery, power failure, etc. The formula is:(Total fixed cost + Total Variable Cost) / Total number of units producedBut in practical we have to understand that fixed cost is for example building rents, variable costs involve utilities, labor cost, material cost, maintenance of machines etc. The card contains all the relevant information like- (a) Name and address, (b) Number, (c) Department, (d) Date of employment, (e) Category, (f) Educational qualifications (g) Experience (h) Name of former employer and reason for leaving him (i) Scale of pay (j) Skills (k) Promotions (l) Reason for leaving. Formula: The formula for conversion costs is as follows: Conversion costs= Direct Labor + Manufacturing Overheads. Various subsidiary ledgers in the form of work-in-progress ledger, factory over-head ledger, etc., are posted with the relevant labour cost items. we are in the same boat but my number are a lot smaller. Job evaluation is the process of studying and assessing the relative values of jobs within an industry, to ascertain their comparative worth. You now have all the elements you need. Unit labour costs are often viewed as a broad measure of (international) price competitiveness. Merit rating brings out the comparative worth of workers. Motion study takes into account human element in the job, plant and machinery, tools and materials to be used. The traits generally considered for determining merit and worth of workers are as under: (1) Educational Qualification and knowledge, (9) Qualities like leadership, initiative, self-confidence and sense of judgement. 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