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Labor cost

Forums › FIA Forums › MA1 Management Information Forums › Labor cost

  • This topic has 1 reply, 2 voices, and was last updated 3 years ago by Ken Garrett.
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  • August 19, 2021 at 9:02 am #632041
    Isabella1
    Participant
    • Topics: 44
    • Replies: 23
    • ☆☆

    Indirect labor on customer demand. How is indirect labor basic and overtime premium charged?

    August 19, 2021 at 3:55 pm #632184
    Ken Garrett
    Keymaster
    • Topics: 10
    • Replies: 10595
    • ☆☆☆☆☆

    If overtime is worked on normal production then all labour at basic rate is treated as a direct cost. The o errime premium is indirect.

    If a specific customer order is the cause of overtime then all the related labour costs, basic plus any overtime premium, are treated as a direct cost of that job.

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