Quelpr
5 marksLabour Costing and Remuneration

CAPE Accounting Unit 2 · 2013 · Paper 2 · Question 1(b)(ii)

Sue Lalah works in Production Department P1 assembling products. She earns $60 per hour for regular time and time-and-a-half for hours worked beyond 45 hours per week.

In the second week, Sue worked 60 hours with no idle time. Allocate Sue's wages for the week between direct labour cost and manufacturing overhead cost.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 1(a)(i)Using the provided answer sheet, prepare a schedule to allocate service department costs to production departments using the step-down method.[13 marks]
  2. 1(a)(ii)Compute predetermined overhead rates for Production Department P1 and Production Department P2.[2 marks]
  3. 1(b)(i)In the first week, Sue worked 45 hours but was idle for 3 hours due to machine breakdowns, with no overtime. Allocate Sue's wages for the week between direct…[4 marks]
  4. 1(b)(iii)Identify two other methods of remuneration/payment that Tell Company could use for its employees.[2 marks]
  5. 1(c)(i)Use a diagram and an example to explain fixed cost.[3 marks]
  6. 1(c)(ii)Use a diagram and an example to explain variable cost.[3 marks]
  7. 1(c)(iii)Use a diagram and an example to explain stepped-fixed cost.[3 marks]

More practice: the rest of this paper · more Labour Costing and Remuneration questions · all CAPE Accounting Unit 2 past papers