The following is the basic payroll date for week 2 of department X of Arshad manufacturing. Arshad manufacturing limited operates a badge costing system .overtime is paid at a time and a half overtimes is used as a means or increasing the output however 20% of the overtime for direct and indirect workers was incurred at the specific request of a customers who required an order to be completed quickly. Assignment / Class activity Department XYZ Direct Worker Indirect workers Basic Rate per hour 1.8 currency 1.2 Total attendance time 960 hours 420 overtime worked 120 hours 48 Shift premium 180 60 group bonus 192 84 Employers EPF contributions 150 66 Employees decustions - Income tax 300 120 EPF 90 42 A breakdown of the direct workers times from returned work shown following Productive time 708 hours Non- Productive machine breakdown 60 hours waiting for material 60 hours waiting for order from superiors 54 hours idle time 90 hours Calculate the gross and net wages for the direct and indirect workers?

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter3: Accounting For Labor

Section: Chapter Questions

Problem 1E: R. Herbert of Crestview Manufacturing Co. is paid at the rate of 20 an hour for an eight-hour day,...

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The following is the basic payroll date for week 2 of department X of Arshad manufacturing. Arshad manufacturing limited operates a badge costing system .overtime is paid at a time and a half overtimes is used as a means or increasing the output however 20% of the overtime for direct and indirect workers was incurred at the specific request of a customers who required an order to be completed quickly.

Assignment / Class activity	Department XYZ

	Direct Worker		Indirect workers
Basic Rate per hour	1.8	currency	1.2
Total attendance time	960	hours	420
overtime worked	120	hours	48
Shift premium	180		60
group bonus	192		84
Employers EPF contributions	150		66
Employees decustions - Income tax	300		120
EPF	90		42

A breakdown of the direct workers times from returned work shown following

Productive time	708 hours
Non- Productive	machine breakdown 60 hours
	waiting for material 60 hours
	waiting for order from superiors 54 hours
	idle time 90 hours


Calculate the gross and net wages for the direct and indirect workers?

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