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Why overtime premiums are treated as direct labour costs

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Reference no: EM131162729

If Eunice is paid a certain amount per hour and overtime is paid at time and a half, when Eunice works overtime, he will receive the full payment that includes the overtime worked. From this ,

a) explain why overtime premiums are treated as direct labour costs.

b) employees who work night shifts may be entitled to a shift allowance or shift premium. How is shift allowance similar to overtime premiums?

Reference no: EM131162729

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