The following is the basic payroll date for week 2 of department X of Arshad manufacturing. Arshad manufacturing limited operates a badge costing system   .overtime is paid at a time and a half overtimes is used as a means or increasing the output however 20% of the overtime for direct and indirect workers was incurred at the specific request of a customers who required an order to be completed quickly. Assignment / Class activity     Department XYZ                               Direct Worker     Indirect workers   Basic Rate per hour     1.8 currency   1.2   Total attendance time     960 hours   420   overtime worked     120 hours   48   Shift premium     180     60   group bonus     192     84   Employers EPF contributions     150     66   Employees decustions - Income tax     300     120   EPF     90     42                     A breakdown of the direct workers times from returned work shown following   Productive time 708 hours   Non- Productive machine breakdown 60 hours     waiting for material 60 hours     waiting for order from superiors 54 hours     idle time 90 hours               Calculate the gross and net wages for the direct and indirect workers?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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The following is the basic payroll date for week 2 of department X of Arshad manufacturing. Arshad manufacturing limited operates a badge costing system   .overtime is paid at a time and a half overtimes is used as a means or increasing the output however 20% of the overtime for direct and indirect workers was incurred at the specific request of a customers who required an order to be completed quickly.

Assignment / Class activity

   

Department XYZ

       
               
     

Direct Worker

   

Indirect workers

 

Basic Rate per hour

   

1.8

currency

 

1.2

 

Total attendance time

   

960

hours

 

420

 

overtime worked

   

120

hours

 

48

 

Shift premium

   

180

   

60

 

group bonus

   

192

   

84

 

Employers EPF contributions

   

150

   

66

 

Employees decustions - Income tax

   

300

   

120

 

EPF

   

90

   

42

 
               

 

A breakdown of the direct workers times from returned work shown following

 

Productive time

708 hours

 

Non- Productive

machine breakdown 60 hours

 
 

waiting for material 60 hours

 
 

waiting for order from superiors 54 hours

 
 

idle time 90 hours

 
     
     

Calculate the gross and net wages for the direct and indirect workers?

   

 

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