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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA MA – FIA FMA › Labour cost
The employee’s basic week is 40 hours at a rate of pay of $9.00 per hour.
Overtime is paid at ‘time and a half’
The employee worked for 52 hours during the week.
Required:
For the following situation:
? Calculate the gross pay, direct and indirect cost
? Show the double entry
(i) The overtime is due to machine breakdown (idle time).
(ii) The overtime is due to general increased in level of activity
(iii) The overtime is due special job at the request of the customer.
(iv) The 10 hours overtime is due to general increased in level of activity. The 2
hours overtime is due to machine breakdown (idle time).
(v) The idle time is 4 hours. The 12 hours overtime is due to general increased
in level of activity.
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You must have an answer in the same book in which you found the question, so ask about whatever it is in the answer that you are not clear about and then I will explain.
Have you watched our free lectures on ‘accounting for labour’ which explain everything needed to be able to answer this question? The lectures are a complete free course for Paper MA and cover everything needed to be able to pass the exam well.
