Forums
Costing
Can u please explain the logic of answering this question?
Answers (2)
Best Answer
They have asked 3cases in case of regular OT, irregular OT, and due to customer expedite.. we have studied that if it is regular practice of company then we have to treat all the expenses i.e., normal wage and overtime premium is treated as employees wages so we have calculated inflated rate which is nothing but the average rate. If it is in irregular situation then the OT amount is alone treated as Overhead and the normal wage as employee cost. If it is due to customer expedite then total amount will be charged to the job. Hope u understand