3/14/22, 1:15 PM Chap 8

Chap 8
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Questions

Tola is estimating the labour cost of a new product, PX. 100 units of PX 2 points

would be produced in the coming period and each unit of PX requires two
labour hours, however 20% of the total labour hours are expected to be
idle. Labour would be paid at $10 per hour.What would be the total labour
cost of producing 100 units of PX?

2500

In order to meet the general production requirements in a factory, direct 2 points

workers may work overtime which is paid at a premium over the normal
hourly rate. Which account(s) would be debited to transfer the overtime
wages of direct workers from the wages control account?

Work-in-progress only

Production overheads only

Work-in-progress and bank

Work-in-progress and production overhead

Clear selection

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3/14/22, 1:15 PM Chap 8

What was employee X's total wage for the three-week period? 2 points

1018

Last period an organisation budgeted to work 45,000 hours 2 points

manufacturing 11,250 units. Actual output last period was 10,700 which
took 43,600 hours to manufacture. What was the labour efficiency ratio
for last period (to one decimal place)

96.4%

95.1%

101.9%

98.2%

Clear selection

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3/14/22, 1:15 PM Chap 8

A trainee accountant working in an accountancy practice carries out a 2 points

variety of work for several clients in a period. What document may be
used by the trainee to record the analysis of hours worked?

Timesheet

Employee record card

Payroll extract

Clock card

Clear selection

What was the capacity utilisation ratio in the period (to one decimal 2 points
place)?

98.7%

97.9%

101.3%

96.7%

Clear selection

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3/14/22, 1:15 PM Chap 8

What is the wages cost to the employer for this employee’s work for the 2 points

week?

443.5

Which of the following relates to the cost of replacing labour force in the 2 points

company?

Improving working conditions

Provision of a pension

Provision of welfare services

Inefficiency due to lower productivity of new workers

Clear selection

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3/14/22, 1:15 PM Chap 8

Which of the following payments to direct workers in a factory would be 2 points

charged as indirect labour?

1 and 2 only

1 and 3 only

2 and 3 only

1, 2 and 3

Clear selection

What were the employee's total earnings? 2 points

370

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