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    Quiz 3-TTh-V1

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    jhion
    This document contains a quiz with 9 multiple choice questions about management accounting concepts such as labor costs, idle time, piecework pay, overtime pay, production bonuses, and labor cost calculations. The questions cover topics like identifying factors that increase labor costs, distinguishing controllable and uncontrollable idle time, situations that can cause idle time, calculating employee pay under piecework and overtime conditions, classifying types of labor earnings, and calculating total labor costs, efficiency ratios, and minimum daily guarantees.

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    Quiz 3-TTh-V1

    Uploaded by

    jhion
    399 views2 pages
    This document contains a quiz with 9 multiple choice questions about management accounting concepts such as labor costs, idle time, piecework pay, overtime pay, production bonuses, and labor cost calculations. The questions cover topics like identifying factors that increase labor costs, distinguishing controllable and uncontrollable idle time, situations that can cause idle time, calculating employee pay under piecework and overtime conditions, classifying types of labor earnings, and calculating total labor costs, efficiency ratios, and minimum daily guarantees.

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    This document contains a quiz with 9 multiple choice questions about management accounting concepts such as labor costs, idle time, piecework pay, overtime pay, production bonuses, and labor cost calculations. The questions cover topics like identifying factors that increase labor costs, distinguishing controllable and uncontrollable idle time, situations that can cause idle time, calculating employee pay under piecework and overtime conditions, classifying types of labor earnings, and calculating total labor costs, efficiency ratios, and minimum daily guarantees.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Download as pdf or txt
    399 views2 pages

    Quiz 3-TTh-V1

    Uploaded by

    jhion
    This document contains a quiz with 9 multiple choice questions about management accounting concepts such as labor costs, idle time, piecework pay, overtime pay, production bonuses, and labor cost calculations. The questions cover topics like identifying factors that increase labor costs, distinguishing controllable and uncontrollable idle time, situations that can cause idle time, calculating employee pay under piecework and overtime conditions, classifying types of labor earnings, and calculating total labor costs, efficiency ratios, and minimum daily guarantees.

    Copyright:

    © All Rights Reserved
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    Download as pdf or txt
    of 2

    Quiz 3 Fall - 2022

    Management Accounting by Zaira Anees


    Time Allowed: 15 Minutes

    1) The following statements relate to labor costs:


    There would be an increase in the total cost for labour as a result of
    (i) additional labor being employed on a temporary basis.
    (ii) a department with spare capacity being made to work more hours.
    (iii) a department which is at full capacity switching from the production of one product to another.
    Which of the above is/are correct?
    a) (i) only
    b) (ii) only
    c) (iii) only
    d) (i) and (ii) only

    2) Which of the following statements is correct?


    a) Idle time cannot be controlled because it is always due to external factors.
    b) Idle time is always controllable because it is due to internal factors.
    c) Idle time is always due to inefficient production staff.
    d) Idle time is not always the fault of production staff.

    3) The following statements refer to situations occurring in Process Q of an organisation which


    operates a series of consecutive processes:
    (i) Direct labour is working at below the agreed productivity level.
    (ii) A machine breakdown has occurred.
    (iii) Direct labour is waiting for work to be completed in a previous process.
    Which of these situations could give rise to idle time?
    A (i) and (ii) only B (i) and (iii) only
    C (ii) and (iii) only D (i), (ii) and (iii)

    4) An employee is paid on a piecework basis as follows:


    Up to 100 units per week $2.40 per unit
    101 to 120 units per week $2.70 per unit
    121 units or more per week $3.00 per unit
    Only the additional units qualify for the higher rate and rejected units do not qualify for payment.
    In a week when the employee produced 133 units of which 11 were rejected, what would be
    the employee's gross pay for the week?
    a) $297
    b) $300
    c) $333
    d) $366
    5) Mike is paid €12 per hour for a 37-hour week, working on a production line. He earns time and a half for
    any hours of overtime worked. During week 22, production was disrupted for 8 hours due to a gas leak in
    the factory and these hours were recorded as idle time. As a result of the disruption, Mike had to work 10
    hours of overtime in week 22.
    How much of Mike’s earnings in week 22 will be classified as indirect labour?
    (a) €120 (b) €144
    (c) €180 (d) €156

    6) A manufacturing organisation has 24 employees who are paid a basic hourly rate of $6.00 for a standard
    38-hour week with any overtime hours being paid at a rate of time and a half. In a typical week, the
    employees all work 4 hours of overtime and produce a total 2,500 units of the organization’s product.
    What is the total unit labour cost for the product?
    a) $ 2.19
    b) $ 2.30
    c) $ 2.42
    d) $ 2.53

    7) Amazon operates a bonus scheme to increase production. Details are available for one employee:
    Employee wage rate $ 9 per hour
    Time allowed for job 40 minutes
    Time taken for job 25 minutes
    The company calculates the bonus payable to the employee as 45% of the time saved on the job.
    Calculate efficiency ratio of labour for the above job? 160%

    8) The following data is given for the labour cost of direct workers:
    Production hours 454
    Training hours 18
    Idle time hours 24
    Total Hours 496
    Wage rate of labour is £8 per hour and overtime premium is £2 per hour. There are 12 direct
    workers in the department and basic wages apply to normal working hours of 40 per week.
    Overtime, idle time and training all are normal.
    What is the total amount to be charged to production overheads? $368

    9) A company pays its staff £0.2 per unit. However, the company guarantees that every member of staff
    receives at least £15 per day. Operator ‘A’ produces following results:
    DAY OUTPUT
    Monday 90
    Tuesday 70
    Wednesday 75
    Thursday 60
    Friday 90
    What is operator ‘A’ earning on Tuesday? $______15______

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