FTC Activity 8 page 56
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Hi
Can anyone help me? I don't even know where to start.
A factory manufactures three components: A, B and C.
During Week 26, the follwing was recorded:
Labour Grade......No of employees.... Rate/hr .........Individual hrs worked
I ...... 6 ...... 8.00...... 40
II...... 18 .......7.20...... 42
III..... 4......... 6.80....... 40
IV...... 1......... 5.60....... 44
Output and stand times during the same week were:
Components.............Output ............. standard mins(each).............
A .............444 .............30
B.............900 .............54
C .............480 .............66
The normal working week is 38 hrs and overtime is paid at a premium of 50% of the normal hourly rate.
A group incentive scheme is in operate. A bonus is paid for time saved ie where actual production is less than the standard time allowed. The time saved is express as a percentage pf hours worked and is shared between the group as a proportion of the hours worked by each grade at a rate of 75% of the normal hourly rate.
(a) Calulate the total payroll showing the basic pay, overtime premium and bonus scheme as separate totals for each grade at labour.
(b) State whether basic pay, overtime premium and bonus pay totals should be direct on indirect costs.
Thanks in advance for your help.
Can anyone help me? I don't even know where to start.
A factory manufactures three components: A, B and C.
During Week 26, the follwing was recorded:
Labour Grade......No of employees.... Rate/hr .........Individual hrs worked
I ...... 6 ...... 8.00...... 40
II...... 18 .......7.20...... 42
III..... 4......... 6.80....... 40
IV...... 1......... 5.60....... 44
Output and stand times during the same week were:
Components.............Output ............. standard mins(each).............
A .............444 .............30
B.............900 .............54
C .............480 .............66
The normal working week is 38 hrs and overtime is paid at a premium of 50% of the normal hourly rate.
A group incentive scheme is in operate. A bonus is paid for time saved ie where actual production is less than the standard time allowed. The time saved is express as a percentage pf hours worked and is shared between the group as a proportion of the hours worked by each grade at a rate of 75% of the normal hourly rate.
(a) Calulate the total payroll showing the basic pay, overtime premium and bonus scheme as separate totals for each grade at labour.
(b) State whether basic pay, overtime premium and bonus pay totals should be direct on indirect costs.
Thanks in advance for your help.
0
Comments
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Re:FTC Activity 8 page 56
Output and stand times during the same week were:
Components Output Std Mins total hrs req
A 444 30 222
B 900 54 810
C 480 66 528
1560
Grade Emp Rate/hr Hrs basic overtime
I 6 8 40 320.00 24.00
II 18 7.2 42 302.40 43.20
III 4 6.8 40 272.00 20.40
IV 1 5.6 44 246.40 50.40
1140.80 138.00
Total Wages 1278.80
hrs wkd % Hrs ex saved Salary saved
240 0.2 312 72 432
756 0.63 982.8 226.8 1224.72
160 0.133333333 208 48 244.8
44 0.036666667 57.2 13.2 55.44
1200 Total Saved 1956.96
So total salary is £1278.80 where basic is £1140.80 and overtime is £138.00
bonus pay is £1956.96
As to whether they are classed as direct or indirect it will depend on the company. Most will take the basic as direct whilst bonus payments i.e. overtime and bonuses are indirect where as others will class basic and overtime as direct and bonuses as indirect
That is the way I would work it, not sure if its 100% accurate though0