Pop Quiz Costing 2

The following are considered as labour cost, EXCEPT

• Wages and salaries of employees

• Welfare deductions for employees

• Insurance for workmen compensation

• Employee bonuses

Which of the following are not the control procedure of labor costing?

• Ensure labour times are recorded accordingly and accurately

• Determine the correct time spent by employees on production

• Accurately calculate wages paid to employees in accordance to their payment scheme

• Ensure the salary paid at the requested amount.

The following are the advantages of incentive scheme:

* Difficult to establish performance levels and rates

* Complex incentives are difficult to administer

* Unskilled group of workers may also earn higher wages

• TRUE

• FALSE

An increase in production without an increase in productivity will not reduce unit costs

• TRUE

• FALSE

Idle time is the time when employees are paid and are available to work, but are not doing any active work.

• TRUE

• FALSE

In a manufacturing company, skilled workers are paid RM10 per hour. In a particular week, the direct skilled workers have worked 10 hours overtime, 2 hours worked on specific orders whereas the other 8 hours worked on general duties. Overtime is paid at a rate of time and a half.

What would be the total wages for the worker?

• RM250

• RM80

• RM110

• RM204

Overtime premiums are treated as direct labour costs:

• If at the specific request of a customer

• Always

Which of the following would be considered indirect labour costs?

• bonus payments

• idle time

• sick pay

• all of the choices