Multiple choice

A machine operator earns Rs 100 per hour. He is paid on the basis of actual time worked and at the rate of one and a half times of normal wages for over time (time in excess of 40 hours a week). During a given week, he worked 45 hours and has no idle time. His labour cost for the week would be

  1. Rs. 4,500

  2. Rs. 4,750

  3. Rs. 5,000

  4. Rs. 4,800
Reveal answer Fill a bubble to check yourself
B Correct answer
Explanation

It is Rs 4,750 Direct labor ( Rs 100 X 45 )                                                    4,500 Manufacturing overhead (overtime premium  Rs 50 X 5 )              250 Total labour cost for the week                                                  4,750  so the right answer is 4750/-

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