Accounting for labour

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October 12, 2019 at 3:57 pm #548922
Ha
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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
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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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