Abstract:

Labor cost is a significant element of cost especially in an organization using more manual operations. It is the cost of human endeavour in the product and requires coordinated efforts for its control. The management objective of keeping labour cost as low as possible is achieved by balancing productivity with wages. The object is often achieved by paying higher wages to limited satisfied workmen with high productivity. Low wage does not necessarily mean low labour cost.

You should be able to:

1. Explain Labour cost and what it involves;

2. Record Labour time and output;

3. Calculate time clocks and other methods of remuneration;

4. Distinguish between idle time, shift premium and overtime premium.


TABLE OF CONTENTS

TITLE ………………………………………………………………………………….PAGE
INTRODUCTION1
TYPES OF LABOUR COST1
Direct LabourCost1

Indirect LabourCost1

TECHNIQUES OF LABOUR COST CONTROL1

PURPOSE OF LABOUR COST2

ELEMENT OF LABOUR COST2

ORGANIZATION FOR LABOUR CONTROL2

Personnel Department2

Engineering Department2

Time-keeping Department3

Payroll Department3

Production Department3

Cost Accounting Department3

METHOD OF TIME RECORDING AND OUTPUT OF LABOUR COST4

Objectives of Time-keeping4

Methods of Time-keeping4

COMBINED TIME AND PAY ROLL CARD6

Requisites of a Good Time-keeping System7

Objectives of Time-Booking9

PAYROLL PREPARATION9

Payroll Department Functions10

WAGE ANALYSIS AND LABOUR10

WAGE ANALYSIS10

WAGES ANALYSIS BOOK11

TREATMENT OF IDLE TIME13

CAUSES OF IDLE TIME14

TYPES OF IDLE COST14

TREATMENT IN COST ACCOUNTING:15

CONTROL16

SHIFT PREMIUM ON LABOUR COSTING16

Shift Differential17

Eligibility for shift premium17

Shift pay hours18

TREATMENT OF OVERTIME PREMIUM18

Overtime18

Overtime Premium18

ELEMENTS OF OVERTIME PAYMENT:18

CONTROL OF OVERTIME:19

Advantages of overtime premium19

Disadvantages of overtime premium19

OVERTIME CALCULATION COMPONENTS: HOW THEY WORK TOGETHER20

1.Rates Costing Method20

2.Extension Costing Method20

Overtime Expenditure Types21

Labour Costing Multipliers21

Labour Costing Rules22

Overtime Projects and Tasks22

How to Calculate Employer’s Cost of Overtime22

EFFECT OF UNIT COST23

METHOD OF REMUNERATION24

Illustration: 129

Solution:29

Bonus or Incentives Schemes30

Illustration: 231

Solution:31

Illustration: 331

Solution:31

Illustration: 433

Solution:33

QUESTIONS AND ANSWERS33
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APA

FAYEMIWO, O. (2018). LABOUR COSTING. Afribary. Retrieved from https://tracking.afribary.com/works/labour-costing-43

MLA 8th

FAYEMIWO, OLUWAFUNMILAYO "LABOUR COSTING" Afribary. Afribary, 29 Jan. 2018, https://tracking.afribary.com/works/labour-costing-43. Accessed 13 Nov. 2024.

MLA7

FAYEMIWO, OLUWAFUNMILAYO . "LABOUR COSTING". Afribary, Afribary, 29 Jan. 2018. Web. 13 Nov. 2024. < https://tracking.afribary.com/works/labour-costing-43 >.

Chicago

FAYEMIWO, OLUWAFUNMILAYO . "LABOUR COSTING" Afribary (2018). Accessed November 13, 2024. https://tracking.afribary.com/works/labour-costing-43

Document Details
By: OLUWAFUNMILAYO FAYEMIWO Field: Accounting Type: Paper 43 PAGES (12714 WORDS) (doc)