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Methods of Labour Remuneration
There Labour remuneration methods can be broadly classified into two factors as:
i. Time rate or on the basis of the time spend in the factory
ii. Piece Rate or On the basis of work done
Most of the remuneration methods are a collections of or modification of these two systems.
Estimate Fixed Overhead Variances Referring to data, we can estimate the fixed overhead variances as given below: Budget for December 2003;
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Budgeted direct labour cost 75000 hours @ $16 per hour Budgeted manufacturing overhead 80 000 hours @ $17.50 per hour Actual direct labour cost $997 500 Budgeted manufa
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