Question

19. A company employs 20 direct production operatives and 10 indirect staff in
manufacturing department. The normal operating hours for all employees is 38 hor
per week and all staff is paid a basic rate of $5 per hour. Overtime hours are paid at i
basic rate + 50%. During a particular week all employees worked for 44 hours to me
the company's general production requirements.
What amount would be charged to production overhead?​

Answer 1

Explanation:

Indirect labor cost is the cost of labor that is not directly related to the production of goods and the performance of services. It refers to the wages paid to workers whose duties enable others to produce goods and perform services.

Unlike direct labor cost, indirect labor costs are not so readily associated with specific units. Employees that make up this group include managerial and administrative staff such as supervisors, accountants, security guards and clean-up workers