Q.2 From the following particulars ascertain the labour cost per day of8 hours:1.Basic pay $200..p.m....2. Leave pay 5%.3.Employers contribution to PF 8% of first and second4.Employer's contribution to ESI 2 1/2% of first and second:5. Pro-rata amenities 17.95 per head p.m.6. Working hours in a month 200 hours.Solution

Total labor cost per man for 200 hours 250 10

Answered: From the following particulars…

Business

Accounting

From the following particulars ascertain the labour cost per day of 8 hours:

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

Q.2 From the following particulars ascertain the labour cost per day of
8 hours:
1.Basic pay $200..p.m....
2. Leave pay 5%.
3.Employers contribution to PF 8% of first and second
4.Employer's contribution to ESI 2 1/2% of first and second:
5. Pro-rata amenities 17.95 per head p.m.
6. Working hours in a month 200 hours.
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