Question 1

• Ramen worked a total of 300 hours during the month of August 2013
• Contact hours is 250 hours per month at labour rate of $10 per hour.
• 40% of overtime worked was to complete customer order dateline. Remaining hours were for other production and support activities.
• Idle time in the normal hour is 20 hours
• Overtime premium policy: 75% premium of the hourly rate

Calculate the wages payable. Show the journal entry for the above.

Question 2

Melinda worked for 240 hours during the month of Jan 2010. Her normal working month consists of 200 hours (Monday - Friday), of which 10% of the hours were non-productive idle time. Out of 40 hours overtime worked, 24 were worked for housekeeping purpose (of which 10 hours were worked on a Saturday) and 16 hours were worked to complete the production requirement to fulfil the customer's request. The human resource department has the following scheme for overtime worked:

• 25 % premium if overtime worked on any weekdays
• 50% premium if overtime worked on any weekend.

Melinda's normal wage rate is RM 50 per hour.

Required: calculate the total wages, the amount to be treated as manufacturing overhead, direct labor cost and the records.