Accounting for Labour – ACCA Management Accounting (MA)
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Good day sir
The extra 150$ paid in piece rate example ,could you explain if that extra 150$ would me a part of indirect cost?
Hi Sir in the piecework example where we have paid the employees 750 although they provided work of 600…how does the company get back on the 150 that has not been worked for? Or would this be taken as a loss to the company?
Good day, sir
Can you give an example of overtime premium paid for a specific job at the customer’s request.
It is the situation where a customer makes a special order for something that the company does not hold in inventory. In order to produce it when the customer requires it the company has to way workers to work overtime.
Why is the average number of employees 100+70 divided by two? That part is very confusing to me
If there are 100 at the start and 70 at the end, then the average is (100 + 70)/2. This is the normal way of calculating any average of two numbers. If you are still unsure then watch the later video on averages.
hi
Hello,
In the Kaplan textbook it says to work out the Labour turnover rate you put the number of employees that have left on the top, where as you have calculated it by looking at how many replacements have been made and putting that on top.
Which method would be correct.
Many thanks
I do not have the Kaplan books so as to check what they have. However what I do in my lectures is 100% correct and is what the ACCA expect.
Thank you very much John.
I appreciate your time
You are welcome
sir here you explained an example of time work from the notes, saying that the total pay of the labour will be $30 whereas in the notes that example is explained as $30 only being the total overtime premium so I’m a bit confused now with overtime premium concept please explain it to me sir.
The notes don’t say that – they say the same as the lecture.
If they were not paying extra for overtime then the 4 hours would have been paid 4 hours x $5 = $20.
Because the overtime is paid at time and a half, they will actually be paid 4 x 1.5 x $5 = $30. This is the total that will be paid for the 4 hours of overtime.
The overtime premium is the extra that they are paid for working overtime and so is 30 – 20 = $10 (or 4 hours x 0.5 x $5).
okay thank you for the help sir got it
You are welcome
good day, i am quite confused as to how we arrive at the figure of time – and – ahalf.
Thank you for your comment