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MCS,PHD
Argosy University/ Phoniex University/
Nov-2005 - Oct-2011
Professor
Phoniex University
Oct-2001 - Nov-2016
37. LO.3 (DL & OH; use of standard cost systems; ethics; writing) Many companies face the prospect of paying workers overtime wages; some of these payments are at time-and-a-half wages.
a. How does overtime pay affect direct labor cost? Variable overhead?
b. Obviously, paying overtime to already employed workers makes better financial business sense than does hiring additional workers. If workers would prefer not to work overtime but do so to maintain their jobs, how does overtime affect the ethical contract between employers and employees?
c. What effects might overtime have on job efficiency? On job effectiveness (such as quality of production)?
d. Would you be in favor of limiting allowable hours of overtime to have more indi- viduals employed? Discuss this question from the standpoint of (1) the govern- ment, (2) the employer, (3) a currently employed worker, and (4) an unemployed individual.
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