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MA Chapter 7 Questions Accounting for Labour

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Comments

  1. darshan.69 says

    March 28, 2023 at 5:10 am

    assembly workers in a factory making calculator can be classified as direct labour?

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    • John Moffat says

      March 28, 2023 at 7:01 am

      They are classified as direct labour (as explained in the free lectures on this).
      The question asks if they will be classified as indirect labour, and of course they will not be 馃檪

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  2. Himanshi@2910 says

    July 20, 2022 at 6:54 am

    Please explain me questions no 2

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    • John Moffat says

      July 20, 2022 at 7:36 am

      If no workers has been replaced, then at the end of the year there would be 80 – 45 = 35 workers.
      Since there were actually 60 workers at the end of the year, it must mean that 60 – 35 = 25 workers were replaced.
      The average number of workers during the year = (80 + 60) / 2 = 70.

      Therefore the labour turnover rate = 25/70 = 35.7%

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  3. TANYASHARMA29 says

    July 5, 2022 at 11:53 am

    Q2) ” during the year a total of 45 employees” ….
    a) during last year OR this year ?
    b) “Production workers” means wagers of day to day basis (direct labour), but “Employees” could mean direct and indirect labour both?

    Thoughts? 馃檪 thank you kind Sir !

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    • John Moffat says

      July 5, 2022 at 3:36 pm

      a) It is the year that both the first sentence and also the requirement refer to i.e. last year. (Otherwise it would be an impossible question anyway 馃檪 )

      b) Direct production workers are employees. Although employees could include other workers as well, how would you intend to do the question if you did not assume that they are the same workers? (You are going to have to get used to this kind of wording in the exam – this is actually a past exam question!!)

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  4. mannannagpal says

    March 10, 2022 at 4:23 pm

    in question 1, is the extra rate that we are paying to produce extra units an indirect cost or direct cost?

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    • John Moffat says

      March 11, 2022 at 7:59 am

      A direct cost. They are paid based on the units produced.

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  5. coxy101 says

    October 27, 2021 at 2:53 pm

    please help with quesion 1, whycant we directly multiply the 1.00 dollar per unit by the 1168

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    • John Moffat says

      October 27, 2021 at 3:19 pm

      Because it only additional units that qualify for the higher rates. So the first 500 are at $0.50 per unit, the next 500 are at $0.75, and so on.

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  6. Madhuradha18 says

    January 18, 2021 at 5:55 pm

    Can you explain about Q1 how come the 168 is not included in the 500 that has been multiplied with 0.75 because the questions states that 501 units to 1001 units must be multiplied with 0.75

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  7. Gachez says

    May 21, 2020 at 1:35 pm

    could you explain question 3 because the units where different why wasn’t that factor considered?

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    • John Moffat says

      May 21, 2020 at 3:04 pm

      The capacity ratio is actual hours worked divided by the budgeted hours. The number of units is not relevant for the capacity ratio which is simply measuring whether more or less hours were available in total.

      I do suggest that you watch my free lectures on this which go through each of the labour ratios. The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.

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  8. mariaboscu says

    March 29, 2020 at 10:06 pm

    100%

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  9. ursinab says

    January 31, 2020 at 1:01 am

    Hi,

    On question 3 about labour capacity, the solution says 11,000(actual)/8,000(budgeted) = 137.5% but the 8,000 are for 20,000 units while the 11,000 are for 25,000, wouldn’t the solution have to be taking that into consideration?

    Thanks

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    • nabiil26 says

      January 1, 2023 at 12:58 pm

      the number of units is not taken into consideration

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  10. alexandrapower says

    April 26, 2019 at 8:07 pm

    Please can you explain the labour efficiency question. Why for the standard hours of actual production do we do the sum (25,000/20,000) x 8,000?

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    • John Moffat says

      May 9, 2019 at 3:14 pm

      If it makes it more obvious to you, the standard time per unit is 8,000 hours / 20,000 units = 0.4 hours per unit.

      Therefore the standard time for the actual production of 25,000 units is 25,000 x 0.4 hours = 10,000 hours.

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  11. aftab2628 says

    March 7, 2019 at 6:51 pm

    question no1 .calculating how much employer earn per day?

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    • balleith says

      April 27, 2019 at 10:18 pm

      yes the question says during one day the employee produced the outputs.

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  12. John Moffat says

    March 3, 2019 at 8:58 am

    aftab2628: You will have to say which question you are asking about.

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  13. aftab2628 says

    March 2, 2019 at 6:52 pm

    CAN YOU PLEASE EXPLAIN WHERE DOES 168 COME FROM ?

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    • mohamed2000 says

      May 21, 2019 at 6:53 pm

      The question says in one day an employee produced 1200 units in which 32 were rejected. so to calculate total amount that employee produced, you should first eliminate rejected production from the total. This will give you a total of 1168 unite (1200-21=1168). since the company are paying their employees on a piece work basis you have to allocate only the required amount of units for the given schemes. first you need to multiply 500 with 0.5. After that, multiply another 500 with 0.75. These two calculations will bring your total output to 1000 so only 168 units are left to be allocated. So just multiply those remaining 168 units with 1. you will get an answer of 793 (500*0.5+500*0.75+168*1)

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      • heshepem says

        August 26, 2019 at 9:28 pm

        thumbs up Mohamed200

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