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Good Evening,
1)When it is said ” overtime is paid at time and a quarter” please what does it mean?
2)Skilled workers are considered to be direct workers and are paid $10 per hr. They worked 20hrs overtime this week, 12hr on specific orders and 8 on general overtime. Overtime is paid at a rate of time and a quarter. I am am required to calculate total overtime pay considered to be direct cost?
This is what was given as the solution
Specific time (direct cost) =12hrs ×$10×1.25
General overtime (direct cost) = 8hrs×$10×1
” (indirect cost) = 8hrs×$10×0.25I do not understand how 1.25 was gotten and why it was split in general overtime as 1 for direct cost and.0.25 as indirect cost.
Pls help,
Thanks.
hi,
before sir John help you, here is what I think,overtime is paid at time and a quarter means it is paid at the normal labour rate plus a quarter, or plus 25%
this means the overtime rate is 10+1/4(10) or (10*25% +10) or (10*125%)
and when overtime is for a specific orders, it is consider as a direct cost, but general overtime is indirect.
it’s all i know.
if you want a quick answer, u should post you topic in “ask tutor f2 forum”, there he answer quickly.
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