over time premium

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February 11, 2019 at 10:51 am #504750
uzaii
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sir my question is why overtime premium is regarded as an indirect cost although production is being done at that period???
February 11, 2019 at 4:30 pm #504789
John Moffat
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The normal pay is treated as a direct cost – it is only the premium for the overtime that is indirect (unless of course it is for a specific job) because it is a cost that should not normally be incurred during production.
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