Kaleidoscope Cutlery manufactureskitchen knives. One of the employees, whose job is to cut outwooden knife handles, worked 49 hours during a week in January. Theemployee earns $14 per hour for a 40-hour week. For additionalhours the employee is paid an overtime rate of $19 per hour. Theemployee's time was spent as follows:
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|
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Regular duties involving cutting out knife handles
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41
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hours
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General shop cleanup duties
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6
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hours
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Idle time due to power outage
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2
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hour
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a)Calculate the total cost of the employee's wages during the weekdescribed above.
b)Determine the portion of this cost to be classified in each ofthe following categories
Direct Labor
Manufacturing overhead(idle time)
Manufacturing overhead (overtime premium)
Manufacturing overhead (indirect labor)