• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • CIMA Forums
  • Ask CIMA Tutor
  • FIA
  • OBU
  • Buy/Sell Books
  • All Forums
  • Latest Topics

Congratulations to Jamil from Pakistan and Jeeva from Malaysia - Global Prize winners!
see all ACCA December 2022 Genius Hunt Competition winners >>

Specially for OpenTuition students: 20% off BPP Books for ACCA & CIMA exams – Get your BPP Discount Code >>

Accounting for Labour

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

  • This topic has 3 replies, 3 voices, and was last updated 1 year ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
  • Author
    Posts
  • September 2, 2021 at 4:11 pm #634001
    suleymanabuzerli
    Member
    • Topics: 84
    • Replies: 32
    • ☆☆

    Jaffa Co employs two types of labour: skilled workers, considered to be direct workers, and semi-skilled
    workers considered to be indirect workers. Skilled workers are paid $10 per hour and semi-skilled $5
    per hour.
    The skilled workers have worked 20 hours overtime this week, 12 hours on specific orders and 8 hours
    on general overtime. Overtime is paid at a rate of time and a quarter.
    The semi-skilled workers have worked 30 hours overtime, 20 hours for a specific order at a customer’s
    request and the rest for general purposes. Overtime again is paid at time and a quarter.
    What would be the total overtime pay considered to be a direct cost for this week?
    A $275 C $375
    B $355 D $437.50
    ANSWER
    Direct cost Indirect cost
    $ $
    Skilled workers
    Specific overtime (12 hours*$10*1.25)= 150 Direct Costs
    General overtime (8 hours*$10 *1)= 80 Direct Costs
    (8 hours*$10*0.25) =20 indirect costs

    Dear Sir,why here 8*10$*0.25 is recognized as indirect costs?

    September 2, 2021 at 4:58 pm #634015
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51551
    • ☆☆☆☆☆

    The premium on overtime is always regarded as an indirect cost unless it is overtime for a specific order at the customers request.

    This is all explained in the chapter in our free lecture notes on ‘Accounting for Labour’ and the lectures that go with the notes.

    The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.

    September 4, 2021 at 4:52 am #634214
    johnbriane
    Member
    • Topics: 170
    • Replies: 160
    • ☆☆☆

    Excuse me sir please

    I tried to solve this question but
    My answers are not matching with the answers of the above question

    September 4, 2021 at 10:59 am #634256
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 51551
    • ☆☆☆☆☆

    Well I cannot explain why your answer is different because I have no idea what you have done!

    The answer above is correct. Do watch my free lectures on accounting for labour.

  • Author
    Posts
Viewing 4 posts - 1 through 4 (of 4 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

ACCA News:

 

ACCA My Exam Performance for non-variant Applied Skills exams is available NOW

NEW! Download the ACCA Pass Guide

FREE Verifiable CPD for ACCA Members

ACCA mock exams and debrief videos

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

Donate

If you have benefited from OpenTuition please donate.

ACCA CBE 2023 Exams

Instant Poll * How was your exam, and what was the result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Specially for OpenTuition students

20% off BPP Books

Get BPP Discount Code

Latest comments

  • John Moffat on Revaluation Reserve – ACCA Financial Accounting (FA) lectures
  • John Moffat on Revaluation Reserve – ACCA Financial Accounting (FA) lectures
  • CHICCO.J on ACCA AB Chapter 1 – The nature and structure of organisations – Questions
  • Joanne94 on Irrecoverable Debts and Allowances Example 3 – ACCA Financial Accounting (FA) lectures
  • Joanne94 on Irrecoverable Debts and Allowances Example 3 – ACCA Financial Accounting (FA) lectures

Copyright © 2023 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in


We use cookies to show you relevant advertising, find out more: Privacy Policy · Cookie Policy