Andy worked 60 hours last week for Bread Works Manufacturing. Of the 60 hours 10 hours were considered overtime, and also Tony was idle for 8 of the 60 hours due to an equipment malfunction. Andy makes $90 per hour and is paid $135 an hour (time and a half) for overtime. Andy's total compensation for that week would be ________, and assuming Bread Works charges overtime premium and idle time to indirect labor, the amount of this compensation credited to indirect labor would be ________.
A) $5,850; $1,170
B) $6,300; $2,070
C) $5,130; $2,430
D) $5,400; $1,620

Question

Quizplus · Accepted Answer

total compensation (50 × $90) + (10 × $135) = $5,850;
indirect labor (8 × $90) + (10 × $45) = $1,170

Andy Worked 60 Hours Last Week for Bread Works Manufacturing