If the direct service labor is $7000, the idle time wages are $2000 and the overtime premium is $950, then the total figure would be __________?
Correct answer: C. $9,950
- A. $5,850
- B. $5,950
- C. $9,950
- D. $10,050
Explanation
The stated total is found by adding direct service labour, idle-time wages, and overtime premium: $7,000 + $2,000 + $950 = $9,950. The overtime premium and idle-time wages are labour-related costs even though they may be allocated differently in practice.
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About Cost Accounting
Cost accounting measures and analyses the cost of producing goods or providing services for planning, control and pricing decisions. It covers direct and indirect costs, fixed and variable costs, job and process costing, break-even analysis, marginal costing, overhead allocation, and the difference between product cost and period cost.
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