lesson 3 acctg for labor Flashcards
(25 cards)
represents labor costs that are TRACEABLE to individual jobs or process worked on during the period (touch labor)
direct labor
example of direct labor
wages of supervisor and workers directly engaged in the production
costs are incurred for a variety of jobs that are related to the production process, but are not directly identifiable with the individual jobs worked on during the period
indirect labor
indirect labor costs are charged to
manufacturing overhead costs or factory overheads
difference between the time for which payment is made and the actual time worked
idle time
time during which the worker did not engage himself in the productive work
idle time
abnormal causes of idle time
failure of power supply
breakdown of machinery
non-availability of material
strike
lock-out
natural calamities
normal causes of idle time
setting-up time
movement from gate to production floor
movement from one job to another
time to take instruction
tea-breaks
personal needs
minor accidents
seasonality of industry
extra compensation paid to an employee who works beyond the normal period of time
overtime
additional rate an employee earns for working more than a regular daily shift
overtime premium
charged to the concerned job or batch
normal causes
transferred to costing profit and loss account
abnormal causes
causes of overtime
completion of a rush order
meeting a sudden spurt in demand
completion of a delayed work
making up for loss of production due to accidents, flood or other natural calamities
paid at a higher rate than the normal rate, say time-and-a-half, double rate
overtime
ot premium is part of ?
manufacturing overheads
systems of wage payment
time rate
piece rate
wages are paid for the time spent on the job
time rate
system of wage payment where output is irrelevant
time rate
calculation of wages under time rate system
total wages = TT x TR
rate per unit of output
piece rate system
output decides the wages payable
piece rate system
standard time is taken and the standard output is determined
piece rate system
determination of piece rate
total wages = output x piece rate
what department sends the payroll record to the treasurer’s office
accounting department
