accountant1

Quesiton
the following data is given for labour costs of direct workers in a department of a facotry for a week :

Production hours 450
training hours 20
idle time hours 32
total hours 502

there are 12 workers in the department and basic wages to a normal working week of 38 hours. Overtime is worked to meet the general requirements of production, and the idle time and training time are regarded as normal. Basic rate of pay per hour is $8.

What is the total amount to be charged as direct labour for the week ?

A) $4,016 (suggested ans)
b) $3,648
c) $3,600
d) $3,760


what is the correct ans ?

Plz reply asap

ADBot

dohard

As determination is unclear ... :S

"What is the total amount to be charged as direct labour for the week ?"

$4016 is just basic salary of 1 labour
so what about other 11 labours??

bcoz labour cost is calculated in totall for production depatment..
therefore answer will be = 8x12x502 = $ 48192