MAC Paper - 1st Dec

Moodley

hello...me again

Thank you all for helping me out with those ratio answers,
Im stuck with another question, Jun 07

Section 1,
how do i handle "overtime paid at a premium of 20%", what does that mean?

or budged overtime premium is included as part of the direct labour cost , well i guess in this case overtime required & overtime payment will be 0 as per this answers givin, but if its not included in the direct labour cost then how do i handle it, pls help!!

Also anyone know what interest cover ratio is, learned it in DFS but cant remember now & just saw it in 1 of the past papers.
enjoy wknd revision

& good luck for Monday...

carla030698

Hi, Im also doing MAC on Monday, not looking forward to it!

Interest cover is the amount of times the interest can be paid the formula is

Profit before interest and tax (Pfrofit from operations) / Finance costs (interest Payable)

good luck! :thumbup:

Lizzim

Moodley wrote: »

hello...me again

Thank you all for helping me out with those ratio answers,
Im stuck with another question, Jun 07

Section 1,
how do i handle "overtime paid at a premium of 20%", what does that mean?

or budged overtime premium is included as part of the direct labour cost , well i guess in this case overtime required & overtime payment will be 0 as per this answers givin, but if its not included in the direct labour cost then how do i handle it, pls help!!

Also anyone know what interest cover ratio is, learned it in DFS but cant remember now & just saw it in 1 of the past papers.
enjoy wknd revision

& good luck for Monday...

I think I did this paper this morning - overtime paid at a premium of 20% means basic pay + 20% so for for example basic pay of £10 would be paid at £12 for overtime.

If overtime is included in direct labour it means you add basic pay + overtime together to get direct labour cost, when overtime is not included in direct it is normally included in non-production overheads (I think!)