Part 2 (Handout from BS) Flashcards
_________are payments made on an hourly, daily, or piecework basis, whereas ________ are fixed payments for managerial services.
Wages
salaries
Other terms necessary for any discussion of labor costs are best defined by equations, as follows:
Gross Earnings =
- Regular Wage =
- Overtime Premium =
Regular wage + Overtime Premium
Total hours worked (including overtime) x Regular hourly rate.
Overtime hours worked x Extra hourly compensation for overtime
Other Additional Compensation chargeable to Factory Overhead Control:
1. Overtime premium
2. Shift premium or differential
3. Bonus.
4. Vacation and Holiday Pay
5. Pensions
6. Fringe costs
7. Incentive Plans
Theoretically, a ______ is a direct cost of production. However, because the purpose of cost accumulation is the establishment of a standard unit cost, these are charged to factory overhead.
bonus
are only two of the most common employee benefits.
Vacation and pension plans
Other fringe costs:
Employer’s share in (not employees’ share):
a. Social Security System
b. PhilHealth Contribution
it includes:
- The filings or excessive trimmings of materials after the manufacturing operations
- Defective materials that cannot be returned to vendor or not suitable for manufacturing operations, and
- Broken parts as a result of an employee error or machine breakdowns that causes the product in a poor-quality condition.
SCRAP
If the scrap has a salvage value, it should be
scrap should be treated as:
collected and placed in the storage and available for sale to scrap dealers or anybody who are willing to buy.
If the scrap is the result of filings, excessive trimmings or material residue, and the costs of scrap cannot be determinable then, the scrap, notwithstanding that they cannot be eliminated in the production, a __________ should be maintained.
record of quality of scrap
The purpose is to keep track and periodically analyze to determine if some of the waste is due to inefficient use of materials and if not eliminated, at least minimize.
Maintaining a record of quality of scrap
as distinguish to scarp materials refers to any amount of raw materials left-over from a production process or production cycle for which there is no further use.
Waste
Waste is not usually _______ at any price and must be _______.
salable
discarded
differ from scrap, in this manner that they are either partially or fully completed unit.
they cannot be corrected either because it is not technically possible to correct them or it is not economical to correct them.
Spoiled goods or spoilage
A glass molded with different design cannot be correctable since it will not be technically feasible because by changing it would distort the original form or by changing the design to its original form would cost more than the benefit to be derived.
is an example of?
spoilage/spoiled goods
is the process of correcting defective goods in order to bring them into a salable condition.
Rework
A ____________ normally arises when the product itself lacks materials, labor and factory overhead.
defective unit
