Page 126 - F2 - MA Integrated Workbook STUDENT 2018-19

Chapter 6

Test your understanding 1

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 labour Paid to indirect labour
$ $

Ordinary time 25,185 11,900

Overtime basic pay 5,440 3,500

Overtime 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

B $30,625

C $34,685

D $36,065

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