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Labour and job and batch costing

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Labour and job and batch costing

  • This topic has 1 reply, 2 voices, and was last updated 7 years ago by John Moffat.
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  • September 21, 2017 at 2:55 pm #408206
    maan87
    Member
    • Topics: 119
    • Replies: 155
    • ☆☆☆

    Hi Dear John sir, plz help me with the following. Your lectures+ help on this forum has always made me clear about everything but till now i’m confused on the topic whether a worker’s basic pay and premium direc/indirect cost who is not physically involved in production but is working overtime on the special request of a customer for a particular job.

    According to you a if a worker who is not physically involved in production then whatever u pay him will b treated as indirect cost whether that is basic pay or premium of general overtime or specific overtime.

    But sir lets say a supervisor(Indirect worker) who works overtime on a special job on special request of customer to do a job early. Then the whole overtime payment (Basic + premium) is traceable on that particular job so it should be treated as direct cost. But according to it would be indirect as worker is indirect. But sir cost is traceable in this particular job so it should be direct cost. Plz make it to me clear. I m really now frustrated on this topic. Moreover in diff books it dealt differently whic make me more panic

    September 22, 2017 at 7:40 am #408288
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54695
    • ☆☆☆☆☆

    All payments to indirect workers are classed as overheads.

    If you are costing a specific job (as opposed to arriving at a cost per unit for normal production) then you take all costs specific to that job, including overheads.

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  • The topic ‘Labour and job and batch costing’ is closed to new replies.

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