question archive A company has its factories at two locations

A company has its factories at two locations

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A company has its factories at two locations. Rowan plan s in use at location A and Halsey plan at location B. Standard time and basic rate of wages are same for a ob which is similar and is carried out on similar machinery. Time allowed is 60 hours. Job at location `A' is completed in 36 hours while at B, it has taken 48 hours. Conversion costs at respective places are Rs. 1,224 and Rs. 1,500. Overheads account for Rs. 20 per cent.

Required: (a) To find out the normal wage rate, and (b) To compare respective conversion costs.

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