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Help needed in ama (urgent)

SUMIT GURURANI (STUDENT) (596 Points)

26 February 2018

In practice manual of ama CA final , chapter no 9, question no 1. ( A company produces dolls and dress kits). Here in overtime calculation why 38000 hours are multiplied by 15 instead of 30( coz it is mentioned in question that overtime will be paid at double the rate). January 2016 practice mannual

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6 Replies

(Guest)

that was just overtime labour as regular labour charges are included above as labour cost..they have considered normal and extra labour cost separately..

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(Guest)

that was just overtime labour as regular labour charges are included above as labour cost..they have considered normal and extra labour cost separately..

SUMIT GURURANI (STUDENT) (596 Points)
Replied 26 February 2018

But the overtime has to be paid at double rate and the normal rate is rs 15. So the overtime has to be rs 30

SUMIT GURURANI (STUDENT) (596 Points)
Replied 26 February 2018

But the overtime has to be paid at double rate and the normal rate is rs 15. So the overtime has to be rs 30

sankalp sharma (student) (118 Points)
Replied 27 February 2018

Actually the labour is working for 238000 hrs but normal time is 200000

you can also calculate as follows:

200000*15= 3000000
38000*30= 1140000
Total. = 4140000

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sankalp sharma (student) (118 Points)
Replied 27 February 2018

but they have calculated it per unit basis
actually they have calculated contribution for all units and in contribution they have considered labour @ 15
it means for all units no. of hrs are 238000 and they have indirectly multiplied that with 15 by multiplying contribution per unit with no. of units
hence they only required to calculate overtime for extra hrs of 38000 for the amount they have paid extra ie. +15 per hr