A direct labor worker at Vorwald Corporation is paid RM14 per hour for regular time and...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A direct labor worker at Vorwald Corporation is paid RM14 per hour for regular time and time and a half for all work in excess of 40 hours per week. The company's fringe benefits cost RM6 for each hour of employee time (both regular and overtime). Last week this employee worked 43 hours but was idle for 4 hours due to material shortages. The company treats all fringe benefits relating to direct labor as added direct labor cost and the remainder as part of manufacturing overhead. Required: Determine how much of the worker's wages for the week would be classified as direct labor cost and how much would be classified as manufacturing overhead cost. Show your work. (9 marks) Explain under what circumstances, would the normal weekly wage for this employee be treated as an indirect labour cost. (7 marks) A direct labor worker at Vorwald Corporation is paid RM14 per hour for regular time and time and a half for all work in excess of 40 hours per week. The company's fringe benefits cost RM6 for each hour of employee time (both regular and overtime). Last week this employee worked 43 hours but was idle for 4 hours due to material shortages. The company treats all fringe benefits relating to direct labor as added direct labor cost and the remainder as part of manufacturing overhead. Required: Determine how much of the worker's wages for the week would be classified as direct labor cost and how much would be classified as manufacturing overhead cost. Show your work. (9 marks) Explain under what circumstances, would the normal weekly wage for this employee be treated as an indirect labour cost. (7 marks)
Expert Answer:
Answer rating: 100% (QA)
The classification of workers wages as direct labor cost and manufacturing overhead ... View the full answer
Related Book For
Managerial Accounting
ISBN: 9780073526706
12th Edition
Authors: Ray H. Garrison, Eric W. Noreen, Peter C. Brewer
Posted Date:
Students also viewed these accounting questions
-
A mechanic's pay is $14 per hour for regular time and time-and-a-half for overtime. The weekly wage function is Where h is the number of hours worked in a week. (a) Evaluate W(30), W(40), W(45), and...
-
Explain under what circumstances you would use hypothesis testing as opposed to an estimation procedure.
-
Explain under what circumstances earthworm channels might increase downward saturated water flow. but not have much effect on the leaching of soluble chemicals applied to the soil.
-
Implement the method contains() for BST.
-
In the early 1990s, Dan Eilers commented that Apple was on a glide path to history. What underlay this assessment? In 1997, Apple Computer was in deep trouble. The company that had pioneered the...
-
An ideal vapor-compression refrigeration cycle that uses refrigerant-134a as its working fluid maintains a condenser at 800 kPa and the evaporator at 20C. Determine this systems COP and the amount of...
-
Suppose the total volatility of returns on a stock is 25%. A linear model with two risk factors indicates that the stock has betas of 0.8 and 1.2 on the two risk factors. The factors have volatility...
-
Prepare a performance report for Imperial Data Devices using the budget information from Exercise 10-15 and the next performance information. In Exercise 10-15, Expected manufacturing costs for...
-
Oscar, Ltd. is a British subsidiary of an American company. Oscar's functional currency is the pound sterling (). The following exchange rates were in effect during 2021: January 1 1 = ps 1.58 June...
-
For R, partition the data sets into 60% training and 40% validation and implement the 10-fold cross-validation. Use the statement set. seed(1) to specify the random seed for data partitioning and...
-
make a report for Werribee victoria australia make graphs and gather information about Werribee Longitudinal Property data: Longitudinal Demographic data Longitudinal Economic data Planned government...
-
State the efficient market hypothesis.
-
How can the profitability index be used to identify attractive projects when there are resource constraints?
-
An investments cost of capital is determined by its beta with what portfolio?
-
If fund managers are talented, why do the returns of their funds to investors not have positive alphas?
-
Why are the value and cash flows of levered equity less than if the firm had issued unlevered equity?
-
1. Compute the closing inventory and the cost of goods sold under the following assumptions: a. FIFO periodic b. FIFO perpetual
-
Funds are separate fiscal and accounting entities, each with its own self-balancing set of accounts. The newly established Society for Ethical Teachings maintains two funds-a general fund for...
-
Skyler Company was organized on November 1 of the previous year. After seven months of start-up losses, management had expected to earn a profit during June, the most recent month. Management was...
-
The Production Department of Harveton Corporation has submitted the following forecast of units to be produced by quarter for the upcoming fiscal year. Each unit requires 0.80 direct labor-hours and...
-
The top management of General Electronics, Inc., is well known for managing by the numbers. With an eye on the companys desired growth in overall net profit, the companys CEO (chief executive...
-
There is another possible explanation for purchased goodwill appearing in a sole proprietor's statement of financial position. What do you think it might be?
-
Why do the assets need to be revalued in these cases? The business has not been sold.
-
The shown partners have always shared profits and losses in the ratio: Holt 4; Stott 2: Young 1. From 1 January the assets were to be revalued as the profit sharing ratios are to be altered soon. The...
Study smarter with the SolutionInn App