MAC Paper - 1st Dec

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...
Comments
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:
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!)