Question
The finishing department in a factory has the following payroll data for the month just ended: Direct Workers Indirect Workers Total attendance time 2,640 hours
The finishing department in a factory has the following payroll data for the month just ended:
Direct Workers Indirect Workers
Total attendance time 2,640 hours 940 hours
(Including overtime)
Productive time 2,515
Non-productive time machine Breakdown 85 hours -
Waiting for work 40 hours -
Overtime 180 hours 75 hours
Basic hourly rate K5,000 K4,000
Group bonuses K2,840,000 K710,000
Employers pension contribution K1,460,000 K405,000
Overtime, which is paid at 140%
basic rate, is usually worked in order to meet the factorys general requirements. However, 40% of the overtime hours of both direct and indirect workers in the month were worked to meet the urgent request of a particular customer.
Required:
(a) Calculate the gross wages to direct workers in the month.
(b) Using the above information, record the relevant entries for the month in the finished departments wages control account and production overhead control account.
(Your should clearly indicate the account in which the corresponding entry would be made in the companys separate cost accounting system (Working must be shown).
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