The wage rate paid to workers (for both direct labor and indirect labor)in excess of their straight time wage rate is:
A)idle time.
B)straight-time.
C)accelerated time.
D)overtime premium.
E)direct costing method.

Question

Quizplus · Accepted Answer

The wage rate paid to workers in excess of their straight time wage rate is known as overtime premium. It is a higher rate of pay usually paid for working beyond the regular hours of work. Option A is incorrect because idle time refers to time when a worker is not engaged in any productive work. Option B refers to the regular wage rate paid during the normal working hours. Option C is not a valid term in this context. Option E refers to a costing method and is not related to labor wages.

The Wage Rate Paid to Workers (For Both Direct Labor