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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 1 reply, 2 voices, and was last updated 6 years ago by John Moffat.
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  • October 12, 2019 at 3:57 pm #548922
    Ha
    Participant
    • Topics: 54
    • Replies: 54
    • ☆☆

    Question 6.6 from BPP practice

    The normal works of A is just 36 hours per week .
    Then we will take( 36 hour * 3.60 )+ ( 2 hour * 1.8$ )

    But the workings in the answer shown ( 38 hour * 3.60 + 2 * 1.8$ ) . Where s that “38 hour” from ?

    Thank you Mr John

    October 13, 2019 at 10:42 am #548982
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    The overtime worked to complete a special job was 2 hours and this is a direct cost.
    The normal 36 hours are a direct cost.

    So 38 hours are a direct cost. (The other 4 hours of overtime are an indirect cost).

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