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dear sir
please help me how can calculate this case:
Eclipse ltd operates a factory that employed 40 direct workers throughout the four week period just ended. Direct employees were paid at a basis rate of 4$ per hour for a 38 hour week. Total hours of the direct worker in the four week in the four week period were 6,528
overtime, which is paid at a premium at 35% , is worked in order to meet general production requirements, 188 hours of direct workers time were worker’s time were registered as idle
employee and employer’s deduction for National Insurance Contribution total 20% and 30% of gross wages respectivelycalculate
a. the total labour cost to be paid for the period lcv
b the total direct and indirect labour costi calculate follow:
over time: 6528 – (38 x 4 x 40)=448
basic pay: 6528 x 4 =26112
overtime: 448 x 4 x 35%= 627.2
idle time: 188 x 4 = 752
gross pay : 27491.2
NIC employer : 20% = 5498.24
total labour cost : 32,989.44my number is incorrect
-> how can calculate a and bDirect costs are the basic pay and any overtime premium that is paid for a specific contact at the customer request.
Indirect costs are general overtime premiums, idle time, sick time.
can u show me detail how can calculate question a ?
because i calculate was wrong mach with lecture F2.
the anwwer just showed of question a is amount : 34,760.96I am sorry but I have no idea how they have arrived at this total!
What you have done is correct, except that the idle hours are included in the 38 hour week which means that more hours would have been paid as overtime.
However that still does not come to what your answer book says.if there is a WIP given lets say X amount.. and then direct material and labour amount is given as well… and its says that overhead are charged 250 percent of prime cost… what would be the value of closing work in progress?
Are we adding the wip amount while calculating the overhead charge?another question is that what is the purpose of mission statement…
is it to state the long term objectives that the owner wishes to achieve
or is it to state the critical success factors fundamental to organizations success?I am sorry to ask these questions here… just came to my mind since i just gave my CBE and thanks to you i passed it with 77 percent.. a bit less than i was expecting but i will take it and thanks for all your help.
Much appreciated
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