Under Rowan plan, bonus is:
ATime taken × rate under the standard convention
BTime saved × rate × 50% per the ICAI BoS reference
CTime saved / time allowed × time taken × rate
DTime allowed × rate
Answer & Solution
Correct answer: C. Time saved / time allowed × time taken × rate
1. Rowan plan computes bonus on a proportional basis rather than a flat percentage.
2. Bonus formula = (Time saved / Time allowed) × Time taken × Rate per hour.
3. This makes the bonus a function of efficiency, peaking when time saved is half of time allowed.
4. Halsey, in contrast, gives a fixed 50% of time-saved × rate as bonus.
_Source: ICAI BoS Inter Paper 3, Ch 3 "Employee Cost", §3.8.2 ¶2_
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