Question
1.A firm's basic rate is Sh. 8 per hour and overtime rates are time and half for evenings and double time for weekends. The following
1.A firm's basic rate is Sh. 8 per hour and overtime rates are time and half for evenings and double time for weekends. The following details have been recorded on three jobs.
Job 1 job 2 job 3
Hours Hours Hours
Normal time 480 220 150
Evening 80 60 80
Weekend 10 30 16
You are required to calculate the labor cost chargeable to each of the jobs in the following circumstances:
i.Where overtime is worked occasionally to meet production requirements.
ii.Where overtime is worked at the customer's request to bring forward the delivery time.
iiiIn order to avoid criticism for spending too long on a job some production workers have been incorrectly classifying part of the time spent actually
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