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How to calculate effective wages rate under Halsey and Rowan plan?
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How to calculate effective wages rate under Halsey and Rowan plan?
How to Calculate Effective Wages Rate under Halsey and Rowan Plan?
Halsey Plan
- The Halsey plan is a system of wage payment that rewards workers for completing a task in less time than the standard time.
- The effective wage rate under the Halsey plan can be calculated as follows:
- Effective Wage Rate = (Time Taken x Hourly Rate) + (20% of Time Saved x Hourly Rate)
- For example, if an employee completes a task in 8 hours and the standard time is 10 hours, and the hourly rate is $10, then the effective wage rate would be:
- Effective Wage Rate = (8 x 10) + (20% of 2 x 10) = $96
Rowan Plan
- The Rowan plan is a system of wage payment that rewards workers for completing a task in less time than the standard time and also takes into account the proportion of time saved.
- The effective wage rate under the Rowan plan can be calculated as follows:
- Effective Wage Rate = (Time Taken x Hourly Rate) + ((Time Saved / Standard Time) x Time Taken x Hourly Rate)
- For example, if an employee completes a task in 8 hours and the standard time is 10 hours, and the hourly rate is $10, then the effective wage rate would be:
- Effective Wage Rate = (8 x 10) + ((2 / 10) x 8 x 10) = $96
Conclusion
- The Halsey and Rowan plans are two methods of wage payment that reward workers for completing a task in less time than the standard time.
- The effective wage rate under the Halsey plan is calculated by adding 20% of the time saved to the time taken and multiplying by the hourly rate.
- The effective wage rate under the Rowan plan is calculated by adding the proportion of time saved to the time taken and multiplying by the hourly rate.
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How to calculate effective wages rate under Halsey and Rowan plan?
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How to calculate effective wages rate under Halsey and Rowan plan? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about How to calculate effective wages rate under Halsey and Rowan plan? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How to calculate effective wages rate under Halsey and Rowan plan?.
How to calculate effective wages rate under Halsey and Rowan plan? for B Com 2024 is part of B Com preparation. The Question and answers have been prepared according to the B Com exam syllabus. Information about How to calculate effective wages rate under Halsey and Rowan plan? covers all topics & solutions for B Com 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for How to calculate effective wages rate under Halsey and Rowan plan?.
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