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Acca Accounting For Labour
Acca Accounting For Labour
Example:
James works a normal 8 hour day, On day
2 James worked 12 hours.
Calculate the overtime
OVERTIME OVERTIME
PAYMENT PREMIUM
•The total •The extra paid
amount paid above the
for the hours normal rate
worked above for the
the normal overtime
number of hours
hours.
EXAMPLE
An employee is paid at an hourly rate of
$10.00 for a 35 hour week with any
overtime hours paid at time and a half.
During week 22 the employee worked for
40 hours.
Indirect Labour
Pass Tuition Centre
Which one of the following should be classified as direct
labour?
Required:
Calculate the labour turnover rate for 2018.
LABOUR EFFICIENCY
The labour efficiency ratio measures the
performance of the workforce by comparing the
actual time taken to do a job with the expected or
standard time.
Required
Calculate the Labour efficiency ratio.
LABOUR CAPACITY
The labour capacity ratio measures the number of
hours spent actively working as a percentage of the
total hours available for work (full capacity or
budgeted hours).
Required
Calculate the Labour capacity ratio.
LABOUR PRODUCTION/VOLUME
The labour production volume ratio compares the
number of hours expected to be worked to produce
actual output with the total hours available for work
(full capacity or budgeted hours).
Required
Calculate the labour production volume ratio.
PRACTICE QUESTION
Zandra budgets to make 15,000 standard units of
output (in 5 hours each) during a budget period of
75,000 hours. Actual output during the period was
20,000 units which took 110,000 hours to make.
Required
Calculate the efficiency, capacity and production
volume ratios.
PRAECTICE QUESTION
Only the additional units qualify for the higher rate and rejected units
do not qualify for payment.
What is the budgeted total labour cost for the next period?
The following information applies to the next THREE
questions
A 93.75%
B 97.3%
C 102.5%
D 106.7%
What is the labour capacity ratio?
A 102.8%
B 99.4%
C 98.6%
D 97.3%
What is the production volume ratio?
A 97.3%
B 102.5%
C 103.8%
D 106.7%
Which of the following methods of remuneration is not an
incentive-based scheme?
A Straight piecework
B Day rate
C Group bonus
D Differential piecework