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National College of Business Administration and Economics: Subject

The document summarizes the calculation of labor costs for a company with 40 workers working 38 hours per week. It calculates total hours worked including overtime, wages including overtime premium, deductions, and direct and indirect labor costs based on productive time, idle time, and overtime premium hours and rates. The total direct labor cost is calculated as $25,360 and total indirect labor cost is calculated as $1,379.20.

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31 views2 pages

National College of Business Administration and Economics: Subject

The document summarizes the calculation of labor costs for a company with 40 workers working 38 hours per week. It calculates total hours worked including overtime, wages including overtime premium, deductions, and direct and indirect labor costs based on productive time, idle time, and overtime premium hours and rates. The total direct labor cost is calculated as $25,360 and total indirect labor cost is calculated as $1,379.20.

Uploaded by

usman faisal
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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National College of Business

Administration and Economics

Subject: COST MANAGEMENT


Submitted To: MUHAMMAD REHEEM
Submitted by: TANZEEL ALI
REG NO: 2183280
BASIC TIME = 4OWORKERS*38HOURS/PW*4W = 6080 H
OVERTIME TOTAL TIME-BASIC TIME
6528-6080 448 H

TOTAL WAGES = BASIC PAY+OVERTIME PREMIUM

6528H AT 4 PER HOURS = 26112


448 HOURS AT 1.40 PER HOUR = 627.2
GROSS WAGES 26739.2
DEDUCTION = 26739.2*30% 8021.76
NET PAY 18717

PRODUCTIVE TIME = TOTAL TIME-IDLE TIME


6528-188 = 6340

DIRECT LABOUR COST = 6340 AT 4 PER HOURS = 25360

INDIRECT LABOUR COST IDLE TIME+OVER TIME PREMIUM


188*5.40 + 260*1.4 = 1379.2

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