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Accounting for labour

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Accounting for labour

  • This topic has 0 replies, 1 voice, and was last updated 9 years ago by Avatarfirelion28.
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  • August 21, 2016 at 1:26 pm #333819
    Avatarfirelion28
    Member
    • Topics: 159
    • Replies: 83
    • ☆☆☆

    Hello Sir

    I am having problems with accounting to the labour

    Firstly-
    When the say 601 units-650 units – is it actually 49 units or 50 units ( a very sill question but just wanted to be sure)

    Secondly- I am super confused with overtime payment and overtime preimium and when is what a direct labour cost . In some questions they say that the overtime payments for direct labour is a direct cost

    Thirdly- What is this time and quarter and how do we calculate the direct wages with that

    Lastly – There is this question in BPP which I cannot understand
    Jaffa Co employs two types of labour: skilled workers(direct labour) and semi skilled workers(indirect labour). Skilled labours are paid $ 10 per hour and semi skilled are paid $ 5 per hour.

    Skilled labour works 20 hours overtime, 12 on specific order and 8 on general
    Overtme is paid at time and quarter.

    Semi skilled worked 30 hours overtime, 20 for specific and rest is geneta. Overtime is paid at time quarter

    ANSWER- SIr, while calculating the skilled labour they do

    Speicifc overtime = 12x10x1.25=150

    What I do not understand is the division of general overtime as they do it like this

    General ( 8x10x1) = 80 ( treated as direct, WHYYY)
    General (8x10x0.25)=20 ( treated as indirect, WHY)

    I cant undertand how they divided the 1.25 and how they get it

    and why is sone as general

    THANKS A LOT

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