Help needed !!!

frenzyfelton

Hi, hoping someone can help, I have failed my ECR sim, my tutor has sent me a practice sim to completed before attempting a further "actual" sim, I'm a little stuck on one question regarding wages:-


OVERTIME
Overtimee will be paid for all hours worked in excess of seven hours per day. Overtime will be paid at a rate of time and a half, ie employees will be paid a premium of 50% for all hours worked in excess of seven per day.

ANALYSIS OF WAGES
The following items are classified as direct wage costs:-
*Basic wages paid for direct tasks carried out on jobs
*overtime premiums incurred at the specific request of a customer

The following items are classified as indirect wage costs:-
*wages paid for travelling time
*Overtime premiums incurred, except at the specific request of a customer

Employees Time sheet :-
Grade 3 - £16.00 per hour

JOB HOURS NOTES
C743 1.5 direct task
C748 4.0 direct task
C752 0.50 direct task, job completed in overtime hours through office error
C756 2.5 direct task, job completed in overtime hours at request of customer
1.5 travelling time





ANALYSIS OF DAILY WAGE:-

Direct wage
*C743 £24.00
*C748 ?
*C752 ?
*C756 ?

indirect wage
*OVERTIME PREMIUM ?
*TRAVELLING TIME ?

Total wages for week ?

Could anyone advise or help as I was hoping to submit my sim tomorrow, I know its Sunday so if any ones reading this your help would be appreciated, the questions are from Sim D1939 "depps plumbing"

Thanks in advance , Felton

visha

First of all work out how much is an employee entitled to receive:

Payment at £16 per hr (1.5+4+.5+2.5+1.5)= 10 Hrs X£16 = X
Over time payment = (10-7=3) x 50% premium rate £?? = Y

Total Payment entitled to an employee = X+Y = Z

NOW we need to work out what is direct costs and what is in direct costs

We know that Travelling is considered as indirect costs -1.5 hrs x £16 = A

We also know that the over time premium id for 3 hrs. Of that 2.5 hrs has been requested by the customer (direct costs) therefore leaving ) 0.5 hrs x 50% premium rate £?? = B

A+B = C = Total indirect costs
Therefore Z – C = Total Direct Costs

Multiply all the jobs number By £16
C756 by (16 + 50%) = ££££

But make sure your total must = Z

frenzyfelton

Thank You !

Visha
Just followed your steps which made perfect sense to me, I have the answer, just wanted to say a big thank you!
Many thanks FF