10 Questions
What type of labor costs are normally charged to overheads?
Indirect labor costs
What is the purpose of calculating equivalent units in cost accounting?
To determine the labor content of work-in-progress
What information is recorded on a time sheet for each employee?
Hours worked, basic pay, and overtime premium
What is the total pay for an employee working a basic seven-hour shift at £12.00 per hour?
£84.00
How are employees paid under a piecework or bonus system treated during a stoppage?
They receive basic pay at a time rate
What is the equivalent units completed for the month if 10,000 units have been completed and 2,000 units are work-in-progress at 50% completion?
11,000 equivalent units
What is the purpose of using a time sheet in cost accounting?
To record hours worked and pay for each employee
What type of labor costs are directly related to production?
Direct labor costs
How are overtime premiums calculated on a time sheet?
Using the hourly rate paid to the employee
What is the total hours worked for the week if an employee works a basic seven-hour shift from Monday to Friday?
35 hours
This quiz covers the concepts of labour costs in cost accounting, including direct and indirect labour, and their application in a production setting.
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