Page 132 - F2 - MA Integrated Workbook STUDENT 2018-19

Chapter 6

Test your understanding answers

Test your understanding 1

B

$25,185 + $5,440 = $30,625. The only direct costs are the wages paid to direct
workers for ordinary time, plus the basic pay for overtime.

Test your understanding 2

$

Direct overtime cost Department A specific overtime 30 × $18 = 540
Department A general overtime 10 × $12 = 120
Total = $660

Indirect overtime cost Department A general overtime 10 × $6 = 60
Department B general overtime 15 × $15 = 225
Total = $285

Total overtime cost 660 + 285 = $945

Department A overtime payment = $12 × 1.5 = $18

Department A overtime premium = $12 × 0.5 = $6

Department B overtime payment = $10 × 1.5 = $15

Department B overtime premium = $10 × 0.5 = $5

124