Question
ITZME worked for a total of 210 hours during the month ended 31 December 2020. His normal contracted working month consists of 160 hours. Non-productive
ITZME worked for a total of 210 hours during the month ended 31 December 2020. His normal contracted working month consists of 160 hours. Non-productive idle time during the month was 20 hours. Out of the 50 hours overtime worked during the month, 10 hours were worked in order to meet the customers order dateline and the remaining hours were worked on other general production and support activities. It is the policy of the company to pay an overtime premium of 50% for overtime worked on weekdays. ITZMEs normal wage rate is RM50 per hour
Required:
a. Total wages to be paid to ITZME (4 marks)
b. Total amount to be treat as direct labour (2 marks)
c. Total amount to be treated as overhead (6 marks) d. The double entry record for the labour (3 marks)
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