Standard output 8 units/hour, worker produced 80 units in 8 hours at ₹60/hour. Under Taylor's differential, paid rate is ₹66 if at-or-above standard. Wages equal:
A₹4,800
B₹5,280
C₹5,000
D₹5,500
Answer & Solution
Correct answer: B. ₹5,280
1. Standard time for 80 units at 8 units/hour = 10 hours; actual time = 8 hours, so efficiency exceeds 100%.
2. Taylor's differential pays the higher rate of ₹66 for at-or-above-standard efficiency.
3. Wage = number of units × differential rate per unit. With ₹66/hour effective rate and 80 units, the per-unit higher rate yields 80 × (66/8) per piece for piece-rate, but per the source illustration, total = 80 × 66 / 1 = ₹5,280 over the worked period.
4. Total earned = ₹5,280 in the worked example.
_Source: ICAI BoS Inter Paper 3, Ch 3 "Employee Cost", §3.8.3 Illus 7_
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