The direct service labor is $5000, the idle time wages are $1000 and the overtime premium is $450, then the total figure would be _________?

Correct answer: B. $6,450

  • A. $4,450
  • B. $6,450
  • C. $21,500
  • D. $14,300

Explanation

Adding the three stated amounts gives $5,000 + $1,000 + $450 = $6,450. Idle-time wages and overtime premium are included in the requested total figure.

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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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