Question

IF (R) is the base rate guaranteed per hour, (S) is the standard time for the job and (T) is the actual time, then according to Rowan plan, wages for the job will be-

• A. TR + (S - T) x R
• B. TR + [(S - T)/2] x R
• C. TR
• D. TR + [(S - T)/S] × R

Answer 1

Answer:

D. TR + [(S - T)/S] × R

owan plan is time based incentive plan. Under Rowan Plan, the standard time for the completion of a job and the rate per hour is fixed. If the time taken by the worker is more than the standard time, then he is paid according to the time rate, i.e. time taken multiplied by the rate per hour. The wages for the job is given as, $W = TR + [(S - T)/S] \times R$