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Forums › ACCA Forums › ACCA MA Management Accounting Forums › Help plzzzz
Sam is an assembly worker earning $12 per hour for a basic 35-hour week. Any
overtime is paid at a premium of 50%.
In the last 4-week period Sam was paid for 150 hours, during this time 15 hours were
classed as idle due to a machine breaking down. Also included in the number of hours
are 4 hours’ overtime spent working for an urgent job at the request of the customer.
How much should be charged to the production overhead account for the 4-week period?
Basic pay for active hours ( 154 hours * $12)= $1848
Overtime premium : ( 4 hours * $6) = $24
Total= $1872
Am i correct??