Overtime Premium help

FayeJones
FayeJones Registered Posts: 4 New contributor 🐸
in Management Accounting Techniques
Hey everyone!

I'm going through some mock papers and I'm confused on why the answer for the premium over time calculation shows the following:

Overtime payment per hour LESS Basic rate per hour (14.50 - 8) ? (See pictures attached)

I've attached the question as well for more context.


Comments

  • anony123
    anony123 Registered Posts: 478 Dedicated contributor 🦉
    I don’t understand what you are confused about?
  • anony123
    anony123 Registered Posts: 478 Dedicated contributor 🦉
    The OP is the overtime rate subtract the basic pay. So if the overtime was 20 and the basic pay was 6 the OP would be 14. Don’t know how to explain it better to be honest.
  • FayeJones
    FayeJones Registered Posts: 4 New contributor 🐸
    anony123 said:

    The OP is the overtime rate subtract the basic pay. So if the overtime was 20 and the basic pay was 6 the OP would be 14. Don’t know how to explain it better to be honest.

    Thank you... The whole book is a lot to take in, I must have missed the explanation in the text book for OP calculation.

  • anony123
    anony123 Registered Posts: 478 Dedicated contributor 🦉
    Oh for your exam OP isn’t important. We all covered it in level 2 and it didn’t come up for me so you are all good.

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