Question

Adam Amos, SS# 123-45-6789, is a Grade 2 Machinist who earns $18 per hour. On Monday, June 10 through Wednesday, June 12, he worked four hours per day on each of Jobs AX20 and AX25. On Thursday, he worked six hours on Job AX25 and two hours on maintenance, while on Friday he worked four hours on AX25 and four hours on maintenance. His supervisor is Emma Nyaondo, who signs off on all labor time records on Saturday of the week just ended. Required: 1. Prepare a labor time record (LTR 777) for Amos for the week ended June 15, 2016. 2. Compute the amounts of direct labor costs, by job, and indirect labor costs created by Amos' work for the week.

Answer 1

1. Labor time Record for the week Ended on June 15, 2016

Days	Hours Worked

-	JobAX20	JobAX25	Maintenance
10 June, Monday	4	4
11 June, Tuesday	4	4
12 June, Wednesday	4	4
13 June, Thurssday		6	2
14 June, Friday		4	4
15 June, Saturday (Total)	12 hours	22 hours	6 hours

2. Direct labour Cost

Hours worked for Direct work - 12 hours on JobAX20 + 22 hours on JobAX25 = 34 hours

Rate Per hour = $18 per hour

Direct labor cost = $18*34

= $612

Indirect Labour Hour= 6 hours on Maintenance

Indirect Labor Cost=$18*6

=$108