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Standard XII
Business Studies
Appraisal, Promotion and Compensation
If time allow...
Question
If time allowed is 6 hrs., Hourly rate Rs.1-50, Time taken
is 4 hours.
Calculate bonus earned under the Rowan system.
A
Rs. 6
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B
Rs. 4
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C
Rs. 2
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D
Rs. 1-50
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Solution
The correct option is
C
Rs. 2
Under the Rowan system of wage payment, standard time to complete a job and hourly rate are fixed.
If a worker is completing the task in more than the standard time, he will be paid on the basis of hourly rate.
If the worker is taking lesser time than the standard, than he is entitled to get the bonus along with the wages.
Bonus= Time saved/Standard Time*Actual Time* Rate
In the given situation, standard hours are 6 but the task is completed in 4 hours only. Time saved 2 hours. Rate Rs.1.50
= 2/6*4*1.50
=Rs.2
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