Good Evening,
1)When it is said " overtime is paid at time and a quarter" please what does it mean?
2)Skilled workers are considered to be direct workers and are paid $10 per hr. They worked 20hrs overtime this week, 12hr on specific orders and 8 on general overtime. Overtime is paid at a rate of time and a quarter. I am am required to calculate total overtime pay considered to be direct cost?
This is what was given as the solution
Specific time (direct cost) =12hrs ×$10×1.25
General overtime (direct cost) = 8hrs×$10×1
" (indirect cost) = 8hrs×$10×0.25
I do not understand how 1.25 was gotten and why it was split in general overtime as 1 for direct cost and.0.25 as indirect cost.
Pls help,
Thanks.