Explain Rowan premium plan of wage payment.

Question 67 of 81

Q. Explain Rowan premium plan of wage payment.

ChseodishaCHSE Odisha Plus Two (Class 12) Commerce Board 2023Subjective· 3mImportance★★★★★est

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Rowan plan: time wages guaranteed + bonus = (Time saved/Time allowed) × Time taken × Rate.

The Rowan premium plan is an incentive wage plan that guarantees the worker's time wages and pays a bonus for time saved against a standard (allowed) time.

Total earnings = (Time taken × Rate) + Bonus, where

Bonus = (Time saved ÷ Time allowed) × Time taken × Rate
Time saved = Time allowed − Time taken.

Key features:

The bonus is a variable proportion of the time-saved wages (unlike Halsey's fixed 50%); the proportion equals Time taken ÷ Time allowed.
Because of this formula, earnings rise with efficiency but the plan automatically checks over-speeding (a worker cannot double wages simply by rushing), and the worker is protected by guaranteed time wages. …

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Same / Similar Concept — real previous-year questions on the same or a closely similar concept, not this exact question.

CBSE 2024Set ANNUAL1 markMCQ
$Q. (i) When time saved is less than 50% of standard time, earning per hour is higher under :$
(a) Halsey plan
(b) Rowan plan
(c) Halsey-Weir plan
(d) Taylor's differential piece rate system
›Reveal solutionSolution
When time saved is less than 50% of standard time, earning per hour is higher under the Rowan plan — option (b).

Compare the two bonus formulae for time saved (S) out of allowed time (A), time taken (T), rate (R):

Halsey bonus = 50% × S × R

Rowan bonus = (S / A) × T × R …
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CBSE 2023Set ANNUAL1 mark
$Q. Express each of the following in one word / term :$
(iii) A premium plan where the bonus may vary from 33 1/3 % to 66 2/3 % of the wages of time saved.
›Reveal solutionSolution
One word/term: Rowan Premium Plan.

In the Rowan plan, the bonus is not a fixed percentage (unlike Halsey, which gives a flat 50% of time saved). The premium is:

Bonus = (Time saved ÷ Time allowed) × Time taken × Rate. …
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CBSE 2022Set ANNUAL1 markMCQ
$Q. When time saved by a worker is equal to 50% of standard time, bonus under Halsey and Rowan plans are :$
(a) Same
(b) More in Halsey plan than in Rowan plan
(c) More in Rowan plan than in Halsey plan
(d) No relation with Halsey and Rowan plan
›Reveal solutionSolution

When time saved = 50% of standard time, Halsey bonus = Rowan bonus — option (a).

Let standard time = S. If time saved = 50% of S = 0.5S, then time taken = S − 0.5S = 0.5S. Let rate = R.

Plan Bonus formula Value
Halsey 50% × time saved × R = 0.5 × 0.5S × R 0.25 S·R
Rowan (time saved / standard time) × time taken × R = (0.5S/S) × 0.5S × R 0.25 S·R
…

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CBSE 2022Set ANNUAL1 markMCQ
$Q. If a worker cannot save 50% or more than 50% of time saved, the more beneficial plan for him, is :$
(a) Halsey Premium plan
(b) Rowan Premium plan
(c) Halsey Weir Premium plan
(d) Both Halsey and Rowan plan
›Reveal solutionSolution
If a worker saves less than 50% of standard time, Rowan pays more bonus than Halsey — option (b).

In +2 Class-12 Cost Accounting (CHSE Odisha), comparing the two plans:

Rowan bonus = (time saved / standard time) × time taken × rate.

Halsey bonus = 50% × time saved × rate. …
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CBSE 2022Set ANNUAL1 markMCQ
$Q. The standard time and actual time of a worker are 8 hours and 6 hours respectively. The hourly rate is ₹10 per hour. Then the difference of bonus under Halsey plan and Rowan plan, is :$
(a) ₹ 5
(b) ₹ 10
(c) ₹ 15
(d) ₹ 2.50
›Reveal solutionSolution

Halsey bonus = ₹10, Rowan bonus = ₹15, difference = ₹5 — option (a).

Given: standard time = 8 h, actual time = 6 h, rate = ₹10/h, so time saved = 8 − 6 = 2 h.

Plan Bonus formula Working Bonus
Halsey 50% × time saved × rate 0.5 × 2 × 10 ₹10

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CBSE 2019Set ANNUAL1 markMCQ
$Q. The formula for calculating bonus under Rowan Plan is$
(a) T x R + 50% (S - T) R
(b) 30% (S - T) x R
(c) (S - T)/S x R
(d) (S - T)/S x T x R
›Reveal solutionSolution
The Rowan bonus formula is option (d): (S − T)/S × T × R.

In the Rowan premium plan (S = standard/time allowed, T = time taken, R = rate per hour):

Time saved = (S − T)

Bonus = (Time saved ÷ Time allowed) × Time taken × Rate = (S − T)/S × T × R

Total earnings = (T × R) + bonus. …
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Plan	Bonus formula	Value
Halsey	50% × time saved × R = 0.5 × 0.5S × R	0.25 S·R
Rowan	(time saved / standard time) × time taken × R = (0.5S/S) × 0.5S × R	0.25 S·R
…

Plan	Bonus formula	Working	Bonus
Halsey	50% × time saved × rate	0.5 × 2 × 10	₹10

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Q.Explain Rowan premium plan of wage payment.

Concept understanding — Rowan Premium Plan

Q.Explain Rowan premium plan of wage payment.

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