According to given information calculate the wages paid to direct labour by the
ID: 411565 • Letter: A
Question
According to given information calculate the wages paid to direct labour by the firm.
Gross wages incurred in September 2017 were $85940. The wages analysis shows thefollowing summary breakdown of the gross pay. Overtime was worked to catch up on a backlogafter several employees were off sick.
Paid to direct labour ($)
Paid to indirect labour ($)
Ordinary time
36000
22000
Overtime: Basic pay
8700
5430
Premium
4350
2715
Shift allowance
3465
1830
Sick pay
950
500
Total
53465
32475
Paid to direct labour ($)
Paid to indirect labour ($)
Ordinary time
36000
22000
Overtime: Basic pay
8700
5430
Premium
4350
2715
Shift allowance
3465
1830
Sick pay
950
500
Total
53465
32475
Explanation / Answer
Wages paid to direct labor by the firm
= Wage for ordinary time + Wage for overtime x ( Basic + Premium) + Shift allowance + shift pay
= $ 36000 + ( $8700 + $4350 ) + $3465 + $950
= $53465
WAGES PAID TO DIRECT LABOR = $ 53465
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