The following information is available regarding the labour costs in a factory department for a Week:...
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The following information is available regarding the labour costs in a factory department for a Week: Payroll hours: Production Training Idle time Total Rate per hour: Basic Overtime premium Indirect personnel 117 Direct personnel 432 24 32 4 488 121 $7.50 $2.50 $6.00 $2.00 The following additional information is provided: i. ii. iii. iv. V. vi. There are 12 direct personnel and 3 indirect personnel in the department. Group bonuses for the week, shared by all workers in the department, total $520. The basic wage rates apply to a normal working week of 37 hours. Overtime is worked in order to meet the general requirements of production. The idle time and the time spent training during the week are regarded as normal. The expected number of payroll hours of direct personnel in the week (excluding time spent training), required to produce the output achieved, is 470. Required: (a) Calculate the total amounts paid in the week (before share of group bonus) to direct personnel and indirect personnel respectively. (b) Determine the total amounts to be charged as direct wages and indirect wages respectively. (c) Prepare the wages control account in the company's separate cost accounting system. Clearly indicate the account in which each corresponding entry would be made. (d) Calculate the efficiency ratio relating to the direct personnel (expressed as a percentage to one decimal place). The following information is available regarding the labour costs in a factory department for a Week: Payroll hours: Production Training Idle time Total Rate per hour: Basic Overtime premium Indirect personnel 117 Direct personnel 432 24 32 4 488 121 $7.50 $2.50 $6.00 $2.00 The following additional information is provided: i. ii. iii. iv. V. vi. There are 12 direct personnel and 3 indirect personnel in the department. Group bonuses for the week, shared by all workers in the department, total $520. The basic wage rates apply to a normal working week of 37 hours. Overtime is worked in order to meet the general requirements of production. The idle time and the time spent training during the week are regarded as normal. The expected number of payroll hours of direct personnel in the week (excluding time spent training), required to produce the output achieved, is 470. Required: (a) Calculate the total amounts paid in the week (before share of group bonus) to direct personnel and indirect personnel respectively. (b) Determine the total amounts to be charged as direct wages and indirect wages respectively. (c) Prepare the wages control account in the company's separate cost accounting system. Clearly indicate the account in which each corresponding entry would be made. (d) Calculate the efficiency ratio relating to the direct personnel (expressed as a percentage to one decimal place).
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a Total amounts paid to direct personnel 12 x 37 x 750 28550 Total amounts paid to indir... View the full answer
Related Book For
Cost Management Measuring Monitoring And Motivating Performance
ISBN: 9781118168875
2nd Canadian Edition
Authors: Leslie G. Eldenburg, Susan Wolcott, Liang Hsuan Chen, Gail Cook
Posted Date:
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