Granolla Mike works as an auditor in the audit firm of Alison Wonderland & Partners and charges
Question:
Granolla Mike works as an auditor in the audit firm of Alison Wonderland & Partners and charges £60 per hour for normal working hours. The firm pays him £90 per hour for unsociable hours, which includes weekends and overtime. During the month of December 2019, Granolla worked a total of normal 120 hours including 60 unsociable hours as overtime.
During the last week of December, the client’s paperwork was not sent on time to the office, Granolla waited for 6 hours without doing any job until the papers were received.
Required
1. Calculate Granolla’s overtime premium pay and total compensation for December 2019.
2. What is Granola’s idle time and the total earnings for December 2019?
3. Discuss the treatment of overtime premium and idle time on the product costs.
Step by Step Answer:
Horngrens Cost Accounting A Managerial Emphasis
ISBN: 9780135628478
17th Edition
Authors: Srikant M. Datar, Madhav V. Rajan