time of departure for employees.
Time sheets
These record how employees’ time has been spent.
Job cards
These prepared for each job. When an employee works on a job he records on the job card the time spent on that job. Job cards also carry instructions to the operator on how the job is to be carried out.
Route cards
These are similar to job cards, except that they follow the job through the works and carry details of all operations to be carried out.
Idle time cards
These cards record the unproductive hours incurred by the employees.
Piecework ticket /Operation cards
Operation card records the total number of items produced and the number of rejects. Payment is only
26 / 42
made for ‘good’ production.
It is important to note that:
- Wages are calculated based on clock cards/operation cards.
- Production costs are obtained from the time sheets/job cards/route cards.
[2006-Jun-SectionA-15] The following statements refer to situations occurring in Process Q of an organisation which operates a series of consecutive processes:
(i) Direct labour is working at below the agreed
productivity level.
(ii) A machine breakdown has occurred. (iii) Direct labour is waiting for work to be completed
in a previous process.
Which of these situations could give rise to idle time?
A (i)and (ii) only B (i)and (iii) only C (ii) and (iii) only D (i)，(ii) and (iii)
27 / 42
Answer: C
3.4 Wages department
Responsibilities of the payroll department.
a) Preparation of the payroll and payment of wages. b) Maintenance of employee records.
c) Summarizing wages cost for each cost centre. d) Summarizing the hours worked for each cost centre.
e) Summarizing other payroll information eg bonus payment, pensions etc.
f) Providing an internal check for the preparation and payout of wages.
3.5 Cost accounting department
Responsibilities of cost accounting department.
a) The accumulation and classification of all cost data (which includes labour costs). b) Preparation of cost data reports for management.
28 / 42
c) Analysing labour information on time cards and payroll.
Analyses of labour costs are used for the following. a) Charging wages directly attributable to production to the appropriate job or operation. b) Charging wages which are not directly attributable to production as follows.
(i) Idle time of production workers is charged to
indirect costs as part of the overheads.
(ii) Wages costs of supervisors, or store assistants
are charged to the overhead costs of the relevant department.
c) Producing idle time reports which show a summary of the hours lost through idle time, and the cause of the idle time. 4．Labour turnover
4.1 Measuring labour turnover Labour turnover rate
=Replacements ÷ Average number of employees in
29 / 42
period
Example:
Revolving Doors Inc had a staff of 2,000 at the beginning of 20X1 and, owing to a series of redundancies caused by the recession, 1,000 at the end of the year. Voluntary redundancy was taken by 1,500 staff at the end of June, 500 more than the company had anticipated, and these excess redundancies were immediately replaced by new joiners.
500/[(1000+2000)/2]=0.33
Example:
A company had 30 direct production employees at the beginning of last year and 20 direct production employees at the end of the year. During the year, a total of 15 direct production employees had left the company to work for a local competitor. The labour turnover rate for last year was: A. 16.7% B. 20.0%
30 / 42