20 direct workers and 5 indirect workers, who all work a basic week of 38 hours, are employed in a factory cost centre.
Overtime is paid at 40% above the basic rate, is worked as necessary to meet the general output requirement of the factory.
Basic rates of pay are as follows:
$ per hour
Direct worker. 12.00
Indirect worker. 9.50
During week six the direct workers were paid for 810 hours and
Indirect workers for 210 hours.
What amount is charged as indirect labour cost in week six?
Ask the Tutor ACCA MA
Direct/indirect labour costs
11y ago#1You will have read my comment to your previous question and the same applies here.
We are not here to just give answers to question like this!
You must say what your problem is
Im having problem with this same question.
What i did was.
I took 5 empl. × 38hrs ×$9.50 =$1805
Overtime 20hrs × $9.50 = $ $190
Overtime premium 20 hrs ×$3.80= $76
Overtime preium from direct worker 12hr × $12 ×0.4= $57.60
Added everything and got $2129 rounded off.
Where did i go wrong?
6y ago#3Overtime for the direct workers is not 12 hours.
20 workers x 38 hours = 760 hours. So the overtime is 810 - 760 = 50 hours.
Sign in to reply to this topic.