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The following data is given for the labour cost of direct workers in a dept of a factory for a week
production hrs 450
Training hrs 20
Idle time hrs 32
total hrs 502there are 12 direct workers in the dept and basic wages apply to a normal working week of 38 hrs. Overtime is work general requirements of production , and the idle time and training time are regarded as normal. basic rate of pay per hour is $8.
WHAT IS THE TOTAL AMOUNT TO BE CHARGE AS DIRECT LAOUR FOR THE WEEK ?
A,$4016
B.$3648
C.$3600
D.$3760
Don’t understand could someone explain
any talented person interested to solve this question!!
training hrs of direct labour is direct cost or indirect cost/?
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Training hours will feature as a direct cost of labour…In my reply the answer would be (450+20) hours multiplied by 8.The answer should be D) 3760
The idle time would be treated as overhead cost for manufacturing and will not feature as direct cost. Hope this helps
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