Q2: According to the December payroll register ABC Co's working hours for each cost center areas follows:Overtime WorkingHour1100 h.DepartmentNomal WorkingTITNumber ofWorkingDays22 days22 days22 days22 daysWorkers2515HourKnittingColoringGeneratorInfirmary4.400 h.2.640 h.330 h.880 h.101.760 h.ABC Co's normal working hours is 8 hours in a day and normal rate is 10 TL. Overtime rate is up to9 hours normal rate, over 9 hours in a day is 12 TL. Employer's Share of Social Security Premium isTL 3.872 TL, Employee's Social Security Premium is TL 2.400 and income tax is TL 3.900. TheEmployer's Share of Social Security Premium will be allocated on the base of nomal working hour.Required:Detemine the direct and indirect labor cost and allocate the labor costto each costcenter.

The cost paid to the labors for performing the work in the organization is known as labor cost. It…

Answered: Required: Detemine the direct and…

Business

Accounting

Required: Detemine the direct and indirect labor cost and allocate the labor costto each cost center.

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

Q2: According to the December payroll register ABC Co's working hours for each cost center are
as follows:
Overtime Working
Hour
1100 h.
Department
Nomal Working
TIT
Number of
Working
Days
22 days
22 days
22 days
22 days
Workers
25
15
Hour
Knitting
Coloring
Generator
Infirmary
4.400 h.
2.640 h.
330 h.
880 h.
10
1.760 h.
ABC Co's normal working hours is 8 hours in a day and normal rate is 10 TL. Overtime rate is up to
9 hours normal rate, over 9 hours in a day is 12 TL. Employer's Share of Social Security Premium is
TL 3.872 TL, Employee's Social Security Premium is TL 2.400 and income tax is TL 3.900. The
Employer's Share of Social Security Premium will be allocated on the base of nomal working hour.
Required:Detemine the direct and indirect labor cost and allocate the labor costto each cost
center.

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