[sasha]

Good day

I have actually passed 2 exams using their notes and lectures.

and you can ask tutors to provide assistance with explanations and question.

It is possible.

[sasha]

Noted with thanks

[sasha]

Got it thank you.

[sasha]

You have to work out the Basic Pay and then the Overtime less the payments:

Basic Pay = 35 hrs x $11 = $385.00

O/T= basic pay + (40% x basic pay) x 3 hrs = ($11.00 + (40% x $11.00) = $46.20

Gross Salary= ( basic pay + overtime) = ($385.00+$46.20) = $431.20

Less Income Tax = ( $76.40)
Less Employee Contributions= 10% of gross pay = 10% x $ 431.20 = $ 43.12

Net Salary = Gross Salary – Income Tax + Employee Contributions
= $431.20 – $76.40 – $43.12
= $311.68 (A)

[sasha]

Yes I understand that now, for some reason I am thinking that the premium should be the time add the half.

I get it now.

[sasha]

explain this over time premium

if the question is saying time and a third that should be 6+(6×1/3)= 8

shouldn’t the over time premium be multiplies by the $8

[sasha]

Well thats not the explaination in the notes: see below:

Illustration
Current scheme: $7/hour, 40 hour week.
Overtime premium = time and a half.
Usually 400 units are produced in 50 hours
Weekly wages = 50 x $7 + 10 x $3.5 = $385
Cost per unit = $385/400 = 0.9625
Proposed scheme: rates as above, but in addition the overtime premium is paid on
any hours saved. Assume that 50 units are now made in 44 hours
Possible results:
Hours saved = 50 – 44 = 6
Weekly wages = 44 x $7 +4 x $3.5 + 6 x $3.5 = 343
Cost per unit = 343/400 = 0.8575

[sasha]

Not according to the notes in the book…

This is why I am puzzled, see notes here:

Chapter 8
Example 1
Note: each unit is expected to take 40/80 = 0.5 hours
Basic wages for 44 hours = 44 x $6 = $264
Overtime premium 4 x $6 x ? = 8
Extra units 10 x $5 = 50
Overtime premium that could be associated with the extra units
10 x 0.5 x $6 x ? = (10)
312

[sasha]

Thank you.

[sasha]

Thanks

[sasha]

A manufacturer absorbs production overheads into the cost of jobs as a percentage of actual direct labour cost. Two
jobs were worked on during a period:
Job 1 ($) Job 2 ($)
Opening work-in-progress 5,269 –
Direct materials in the period 10,726 4,652
Direct labour in the period 4,360 2,940
Production overheads of $9,855 were incurred in the period. Job 2 was completed in the period.
What is the value of work in progress at the end of the period?
A $20,972
B $24,941
C $26,241
D $20,355

[sasha]

Good day,

Please explain the following:
Product X requires 1·8 kg of a raw material per finished unit. The material has a weight loss of 10% in preparation
for manufacture. Inventory of the material is currently 420 kg but needs to be increased to 500 kg. 2,000 units of
Product X are to be manufactured.
How many kg of the raw material need to be purchased to satisfy the above requirements?
A 3,880
B 3,920
C 4,040
D 4,080

[sasha]

There was no work-in-progress in a manufacturing process at the start of a period. 18,000 units of a product
commenced processing in the period during which completed output was 16,100 units. The work-in-progress was
75% complete for conversion costs which were $4·60 per equivalent unit. There were no losses or gains in the
process
What amount was included in the closing work-in-progress for conversion costs?
A $6,555
B $8,740
C $11,653
D $18,515

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