Labour (urgent)

[accountant1]

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

[hariharm]

(A) is correct. Since training hours and idele hours are considered part of normal, the excess shouls be taken to be overtime worked to meet production requirements. Therefore 502x8 = 4016 is correct.

(B) is wrong as it does not consider overtime
(C) is wrong as it ignores overtime and also training and idle hours (which are "normal")
(D) is wrong as it ignores idle hours and overtime

[Admin]

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

Please do not type in BLOCK CAPITALS!! please read the rules. Thanks

[steelman]

thanx alot

[saib]

the correct ans is (b) 3648$
because he is asking for only ^direct labour cost which can be charged^
how 12 workers , 38 hours , 8 per hour
12 multiply 38 multiply 8 =3684