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In Business / High School | 2025-07-03

A manufacturing firm is very busy and overtime is being worked. How would the amount of overtime premium contained in direct wages normally be classed?

a. Part of prime cost
b. Factory overheads
c. Direct labour costs
d. Administrative overheads

Asked by wiltseliz60061

Answer (2)

Overtime premiums in direct wages are classified as direct labor costs, as they are directly associated with the labor of producing goods. This places them within the broader category of costs associated with labor in the manufacturing process. Therefore, the correct answer is option c.
;

Answered by Anonymous | 2025-07-04

In the context of cost accounting and how overtime premium is classified within a manufacturing firm's financial records, understanding where to allocate overtime is crucial.
What are Overtime Premiums?
Overtime premium refers to the additional amount paid to workers for hours worked beyond their regular working hours. This is often necessary when a company experiences higher demand and needs to increase production. ;

Answered by IsabellaRoseDavis | 2025-07-06

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