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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › INDIRECT COSTS
staff working to assemble products are paid $10 per hour, and any hours over 35 per week are paid at a rate of $15 per hour. last week, an employee was paid for 42 hours, including three hours during which he was idle due to machinery breakdown. how much of the employee’s wages for last week would be treated as an indirect cost?
hello sir / maam please help is the anser 65
??
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The idle time is an indirect cost. The overtime premium is an indirect cost.
So (3 x $10) + (7 x $5) = $65
