CA Inter P4 · Chapter 3 · Question 2 of 11
Using the same data (standard time 40 hours, time taken 30 hours, rate ₹80 per hour), total earnings under the Rowan plan are:
Test yourself: pick an answer
Reveal answer & explanation
Correct answer: C) ₹3,000.00
Explanation
Rowan bonus = (time saved / standard time) x time taken x rate = (10/40) x 30 x ₹80 = ₹600. Total earnings = time wages ₹2,400 + bonus ₹600 = ₹3,000. Note that the Rowan bonus here exceeds the Halsey bonus because time saved is less than 50% of standard time.
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