Ms.Taylor works at an assembly plant that produces footballs.She earns $18.00 an hour for straight-time and $36 per hour when she works overtime.She reported that she worked 46 hours during the previous reporting period,which included 6 hours of overtime.
Required:
Compute the total compensation for the week;the amount of compensation that was reported as direct manufacturing labor;the amount of compensation that is reported as a manufacturing overhead cost.
A)$900;$810;$80
B)$926;$822;$88
C)$936;$828;$108
D)$942;$832;$116
E)$950;$860;$124

Question

Quizplus · Accepted Answer

C)Total Compensation: Direct Labor [(46 hours × $18)+ Overtime premium (6 hrs × $18)] = $936
Direct Manufacturing Labor [(46 hours × $18)] = $828
Manufacturing overhead costs = Overtime premium [(6 hrs × $18)] = $108

MsTaylor Works at an Assembly Plant That Produces Footballs