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Question 4 (a) Explain the following cost items, manufacturing business' cost accounts relating to direct personnel in relation to a () Idle time (i) Overtime
Question 4 (a) Explain the following cost items, manufacturing business' cost accounts relating to direct personnel in relation to a () Idle time (i) Overtime (3 marks) (3 marks) (b) Explain the various labour rerpu apply in paying its workers. (c) The following information is available regarding the labour costs in a manufacturing department for a week that a manufacturing compa Indved (6Marks) n methods Direct Personnel Indirect Personnel 650 20 Recorded hours: Production Training Idle time Total Rate per hour: Basic Overtime premium Additional information: 1,000 38 40 1,078 670 Shs. 2,000 Shs. 500 Shs 1,500 Shs 450 ) There are 50 direct personnel and 5 indirect personnel in the department. (ii) Group bonuses for the week, shared by all workers in the department, total 25,000 (ili) The basic wage rates apply to a normal working week of 80 hours (iv) Overtime is worked to meet the general requiren (v) The idle time and the time spent training during the week are regarded as normal. (vi) The expected number of recorded hours of direct personnel in the week (exclucling training time) required to produce the output achieved is 1,20 hours Required: (0) Calculate the total amount paid in the week (before share of group bonuses direct personnel and indirect personnel respectively. (ii) Determine the total amounts to be charged as direct wages and indirect w respectiv 1,200 (7 marks (6 marks
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