The finishing department in a factory has the following payroll data for the month just ended: Direct
Question:
• Total attendance time 2,640 hours 940 hours (Including overtime)
• Productive time 2,515
• Non-productive time machine Breakdown 85 hours - Waiting for work 40 hours -
• Overtime 180 hours 75 hours • Basic hourly rate K5,000 K4,000
• Group bonuses K2,840,000 K710,000
• Employer’s pension contribution K1,460,000 K405,000 Overtime, which is paid at 140% basic rate, is usually worked in order to meet the factory’s general requirements. However, 40% of the overtime hours of both direct and indirect workers in the month were worked to meet the urgent request of a particular customer.
Required:
(a) Calculate the gross wages to direct workers in the month.
(b) Using the above information, record the relevant entries for the month in the finished departments’ wages control account and production overhead control account. (Your should clearly indicate the account in which the corresponding entry would be made in the company’s separate cost accounting system (Working must be shown).
Essentials of Business Statistics
ISBN: 978-0078020537
5th edition
Authors: Bruce Bowerman, Richard Connell, Emily Murphree, Burdeane Or