Question
Flag Chineke Ltd managements have presented to you the following information. Budgeted production for the next budget year of 36 000 units. Each unit of
Flag Chineke Ltd managements have presented to you the following information. Budgeted production for the next budget year of 36 000 units. Each unit of production requires four labour hours and the budgeted labour rate is N$12 per hour excluding overtime. You were informed that Idle time is expected to be 10% of total hours available, i.e. including idle time. Due to labour shortages, it is expected that 20% of the hours paid, including idle time, will be paid at an overtime rate of time and a half. Required: Calculate the total labour cost as per the labour cost budget
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