Notes - Chapter 4:Labor

Saturday, 11 March 2023 12:50 pm

1. Direct Labor
- WIP
- Hours worked x Rate per hour of production worker
- except holiday pay (kasi hindi naman pumasok)

Direct Position Direct Labor

Indirect Labor
Indirect Position Indirect Labor

2. Indirect Labor (FOH)

a) Idle Time & Machine Set-up Time

= Idle Hour x Machine Rate

b) Make-up Pay
= Guaranteed Pay - Actual Pay (Piece x Piece Rate)
note: GP>AP kasi kulang 'yung nagawa or less than the quota, BUT if sobra no
problem

c) Labor Cost of Reworking Defectives

d) Employer Share
e) Vacation, Sick Leave, Health Insurance, Pension, Incentives
f) Premiums (excess of 100%)

Gross Earnings
Without Night With 10% Night
Differential Differential
Premium Premium
(6 am - 10 pm) (10 pm - 6 am)
1st 8 hours Excess of 8 hrs 1st 8 hours Excess of 8 hrs
Regular Day 100% 125% 110% 137.50%
Rest Day / 130% 169% 143% 185.90%
Special Holiday
Rest Day & 150% 195% 165% 214.50%
Special Holiday
Regular Holiday 200% 260% 220% 286.00%
Regular Holiday & 260% 338% 286% 371.80%
Rest Day
Two (2) Regular 300% 390% 330% 429.00%
Holidays
Two (2) Regular 390% 507% 429% 557.70%
Holiday and RD

+25% R + 10% RE + 10%

Cost Accounting and Control Page 1

 +25% R + 10% RE + 10%
+30%

Positions

Direct Indirect Administrative Sales

Laborer Production Supervisor Finance Supervisor S&M Supervisor
Production Worker Maintenance AR Staff Sales Assistant
Quality Control AP Staff Marketing Manager
Computer Programming Inventory Staff Marketing Assistant
Troubleshooting Managing Director
Middle Manager Operations Manager
HR Asst.
Finance Staff
Accounting Staff
Purchasing Asst.

Terms and Conditions

Holiday Pay
- present ka last regular working day
- if naka-leave, kung ay bayad 'yung leave mo sa last regular working day alam mong entitled ka

Regular Holiday
- if hindi pumasok, basta nakamit conditions ng holiday pay, meron pa
- if pumasok, babayaran pay at 100% + 100% premium

Special Non-working Holiday

- if hindi pumasok, if na-meet ang conditions for holiday pay, entitles sila sa holiday pay kahit
working/non-working

Special Working Holiday

- if pumasok, basic

Wage Plans

Hourly-rate plan - Definite rate per hour per employee

- Rate per hour x no. of hours worked
Piece-rate plan - Definite rate per output per employee
- Rate oer output x no. of output worked
Modified Wage Plan - Combination of hourly-rate and piece-rate plans
Daily-rate plan - Definite rate per day per employee
- Rate per day x no. of hours worked
Monthly-rate plan - Definite rate per month per employee
- Rate per month x no. of hours worked

Illustration

Cost Accounting and Control Page 2

Cost Accounting and Control Page 3
Cost Accounting and Control Page 4