A Sebring crew payroll record has 32 regular hours and 8 overtime hours at $29 per hour. What labor cost should be posted before burden?
Correct Answer
A) $1,276.00
Overtime cost uses one and one-half times the regular hourly rate for overtime hours.
Why This Is the Correct Answer
Overtime cost uses one and one-half times the regular hourly rate for overtime hours.
Why the Other Options Are Wrong
Option B: $1,160.00
$1,160.00 is below the supported result for overtime labor cost; it likely skips a premium-pay or employer-cost component.
Option C: $928.00
$928.00 is below the supported result for overtime labor cost; it likely skips a premium-pay or employer-cost component.
Option D: $1,566.00
$1,566.00 is above the supported result for overtime labor cost; it likely pays the wrong premium tier or counts the same hours twice.
Memory Technique
Overtime Labor Cost ladder for Payroll Clerk: hours climb before dollars add up.
Reference Hint
Open-book path: tab Builder's Guide to Accounting, 2001 to Builder's Guide to Accounting, Payroll cost coding and direct labor records; verify the trade cost, production, or field-control rule before answering.
More Business & Finance Questions
The Cedar Key subcontract closeout file requires 44 final releases, and 31 have been received. How many releases are missing?
A Florida GC prepaid $18,000 for annual insurance and expenses it evenly by month. After 7 months have expired, what prepaid asset remains?
The West Miami system access list starts with 22 active users, adds 4, and removes 7. How many active users should remain?
The Winter Park bank review shows a bank balance of $124,600, book balance of $119,400, and known timing items of $3,200. What unexplained difference remains?
The Riverview bank review shows a bank balance of $87,500, book balance of $90,400, and known timing items of $1,600. What unexplained difference remains?
A Satellite Beach contractor had 4 separations during the quarter and an average headcount of 32. What turnover rate should HR report?
A Winter Park startup budgets monthly overhead of $61,500 and wants a 4-month operating reserve. What reserve should be funded?
A Royal Palm Beach customer account has unpaid approved invoices of $126,000. Company policy requires review when unpaid invoices exceed $100,000. What status applies?
A Wildwood contractor had 9 separations during the quarter and an average headcount of 60. What turnover rate should HR report?
A Clermont field group had 64 absence hours out of 1280 scheduled hours. What absence rate should be reported?
People Also Study
Related Study Resources
Previous Question
Ruskin beginning cash is $76,500. Cash receipts are $418,000. Disbursements are $295,600 to vendors, $71,200 for payroll, and $18,400 for taxes. What ending cash is forecast?
Next Question
A Florida contractor pays $19,500 cash for small tools that are recorded directly as an expense. What is the immediate effect on cash?