Rowan premium plan
This premium bonus plan was introduced by Mr. James Rowan. It is similar to that of Halsey plan in respective of time saved, but bonus hours are ascertained as the proportion of time taken which the time saved bears to the time allowed and __________ ___ _____ ___ ___.
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Control Accounts
Overheads
Rowan premium plan
The production department of a factory furnishes the following information for the month of October, 2020.
| Rs. | Hours | |
| Materials used | 54000 | |
| Direct wages | 45000 | |
| Overheads | 36000 | |
| Labour hours worked | 36000 | |
| Machine hours worked | 30000 |
For an order executed by the department during October, the relevant data is as follows:
| Rs. | Hours | |
| Materials used | 6000 | |
| Direct wages | 3200 | |
| Labour hours worked | 3200 | |
| Machine hours worked | 2400 |
Calculate the over heads chargeable to the job by (a) Direct Materials Cost Method, (ii) Direct Labour Cost Method, (iii) Labour Hour Rate, and (iv) Machine Hour Rate.
Methods of absorption
What do you mean by cost? What are the different methods of costing? Distinguish between direct cost and indirect cost.
What do you understand by materials control? What are the important requirements of an efficient system of material control?