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Yes I am sorry but I did not have any answer to this question as this is not from the Kit but from another source. My answer was the same. Thank you so much for clearing it.
Thank you so much.
But can you still specify the value of materials is 5000 or 4600?Sorry, actually I missed some data there. Overtime premium is $1. Basic rate is $3. Production overheads are $5 per labour hour so we have $1000 (5×200).
What I am confused about is, if we have direct labour cost of 100hrs x $3 = $300 right? So for overtime we will again add overtime 100hrs x basic rate $3 and 100hrs x premium $1?
So totals should be:
Direct labour 300
Over basic pay 300
Overtime premium 100
Prod overheads 1000
Materials used 5000
Supervisor 100
Am I right?
And will we take 5000 material or 5000-400=4600 material?
