ECONOMICS

COST ACCOUNTING

INTRODUCTION TO COST ACCOUNTING

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Ahmad worked as account assistant. He was paid RM25 per hour. He worked 45 hours and normal working hours is 40 hours. What is the basic pay for Ahmad?

A	RM1, 100
B	RM1, 125
C	RM1, 215
D	RM1, 000

Explanation:

Detailed explanation-1: -The hourly rate is obtained by dividing the value of fringe benefits and payroll taxes by the number of hours worked in the specific payroll period.

Detailed explanation-2: -Once you have the total cost, the direct labor rate is calculated by dividing that dollar amount by the total hours of labor calculated earlier. The result is the direct labor cost per hour for the production of that product or the delivery of that service.

Detailed explanation-3: -Its formula is: Bonus= Time saved /Standard time x Time taken x Rate per hour ■ Total Earnings = (Time taken x Rate per hour )+Bonus. Two piece rates are fixed. If the worker does the work within the standard time, he receives the higher piece rate, whereas if he takes longer time he receives the lower piece rate.

There is 1 question to complete.