Quiz 5 CTB Units 3 and 4

When work done by a factory operative cannot be connected to a particular job, the wages are classified as

• direct wages

• production overhead

• prime cost

• admin overhead

Overtime premium is treated as direct wages when

• work is done at the request of the supervisor

• overtime work was carried out as a result of machine breakdown earlier in the day

• company wants to increase production in anticipation of festive period

• customer makes changes to design

In a factory, assemblers are paid $20 an hour. Overtime work is paid 1.5 times on weekdays and double time during week-ends. During the first week of November, workers worked for 20 overtime hours during week-days and 10 overtime hours during week-ends. Calculate total overtime premium for the week.

• $600

• $400

• $1,000

• None of the above

Water and electricity charges across different departments in a manufacturing company is usually allocated

• based on floor space of each departments

• based on cost of equipment in each department

• based on number of workers in each department

• equally to all the departments

Alice works in a garment factory. In one week, she worked 18 overtime hours in addition to her normal 40 hours. She is paid $18 an hour and any overtime is paid at 1.5 times. Calculate Alice's overtime premium that will be treated as indirect wages if half the overtime work was done at the request of a customer.

• 18 hours x 1.5 x $18 = $486

• (58 x $18) + (18 x 0.5 x $18) = $1,206

• 9 x 0.5 x $18 = $81

• 18 x 0.5 x $18 = $162

Identify cost that will not be part of production cost for a furniture factory.

• timber and plywood used

• normal wages paid to carpenters

• cost of secondary packing materials

• factory supervisor's wages

Mars Manufacturing Comany produces chocolates. Its trial balance for last month showed the total factory rent has been charged to administration overhead. How will this have an impact on its Cost of Production report?

• Production cost will be overstated

• Production cost will be understated

• Prime cost will be understated

• No impact

Wolverine works as a chef in Crystal Jade Kitchen. He is required to work 8 hours a day; 5 days a week. Last week, Wolverine worked an additional 8 hours doing overtime work. He also attended a 3 hour workshop on Wednesday morning. Calculate his normal hours for last week.

• 8 hours

• 37 hours

• 40 hours

• 48 hours

Wages paid for abnormal idle time in a factory will be part of

• prime cost

• production overheads

• administration overheads

• marketing overheads

Mani works as a production worker on a 40 hour week. He is paid $20 an hour and overtime work at 1.5 times. In one week he worked 54 hours on a single job. 8 of his overtime hours was due to design changes made by the customer. Calculate the direct wages that will be charged to the customer's job.

• (40 x $20) + (8 x 0.5 x $20) = $880

• (54 x $20) + (14 x 0.5 x $20) = $1,220

• (54 x $20) + (8 x 0.5 x $20) = $1,160

• none of the above