Q224
If overtime is resorted to at the desire of the customer, then the overtime premium:
A.
should be charged to costing profit and loss account;
B.
should not be charged at all
C.
should be charged to the job directly
AnswerD.
should be charged to the highest profit making department
Answer: Option C
Solution
Answer: Option C
Solution:
If overtime is resorted to at the desire of the customer, then the overtime premium should be charged to the job directly. Overtime premium is paid to the workers for the extra time worked than the normal working hours specified in the Factories Act, 1948 or work agreement with the union.