AAT Level 3 Overheads recap

Labour payment based on time worked by an employee

• Piecework rate

• Time rate

• Overtime

• Idle time

Time during which work is stopped but employee still gets paid time rate

• Piecework rate

• Time rate

• Overtime

• Idle time

Labour payment method based on the work done by an employee

• Piecework rate

• Time rate

• Overtime

• Idle time

The additional pay above normal rates which is paid to employees working overtime

• Bonus payment

• Overtime payment

• Overtime premium

Direct materials + Direct labour + Direct expenses

• Prime cost

• Overheads

Indirect materials + indirect labour + indirect expenses

• Prime cost

• Overheads

What would usually be the basis of apportionment for rent or rates?

• Carrying amount of machinery

• Floor space

• No of employees

What would usually be the basis of apportionment machine insurance?

• Carrying amount of machinery

• Floor space

• No of employees

What would usually be the basis of apportionment buildings insurance?

• Carrying amount of machinery

• Floor space

• No of employees

What would usually be the basis of apportionment for supervisory costs?

• Carrying amount of machinery

• Floor space

• No of employees