ACCOUNTING FOR LABOUR
1. Anne is paid $6 per hour for a 35-hour week, with overtime at time and a third. Last
week she worked 40 hours, the overtime being for general purposes. The indirect labour
cost of this last week is:
A $0
B $10
C $30
D $40
2. Given below is a graph of a labour cost:
What type of labour cost is this?
A A straight piece rate system
B A straight time rate system
C A differential piece rate system
D A piece rate scheme with a minimum guaranteed amount
3. An employee is paid $8.40 per hour for all hours worked up to a total of 38 each week.
For any overtime hours he is paid time and a third. In a week where he works for 45
hours what is his total gross pay and his overtime premium?
Gross pay Overtime premium
$ $
A 397.60 19.60
B 397.60 78.40
C 504.00 19.60
D 504.00 78.40
4. A business runs a bonus scheme whereby each employee earns a bonus based upon the
following formula:
