ACCAchap7.pptVIP

Study guide Replacement costs Preventative costs 4. Labor turnover 4.2 The costs of labor turnover Why do employees leave? How to reduce labor turnover? 5. Accounting for labor costs Gross wages incurred in department 1 in June were $54,000. The wages analysis shows the following summary breakdown of the gross pay. paid to direct labor paid to indirect labor Ordinary time 25,185 11,900 Overtime: basic pay 5,440 3,500 premium 1,360 875 Shift allowance 2,700 1,360 Sick pay 1,380 300 36,065 17,935 What is the direct wages cost for department 1 in June? A 25,185 B30,625 C34,685 D36,065 5. Accounting for labor costs The wages control account for A Co for February is shown below. wages control account Bank 128,400 work in progress control 79,400 Balance c/d 12,000 production overhead control 61,000 140,400 140,400 Balance b/d 12,000 Which of the following statements about wages for February is not correct? A wages paid during February amounted to 128,400 B wages for February were prepaid by 12,000 C direct wages cost incurred during February amounted to 79,400 D indirect wages cost incurred during February amounted to 61,000 * * * ? 2002 IBM Corporation Chap7: Labor Costs Chap7: Labor Costs Measuring labor activity Remuneration methods Recording labor costs Labor turnover Accounting for labor costs 1. Measuring labor activity Production is the quantity or volume of output produced. Productivity is a measure