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Fred Adams Is Employed by the Cedar Manufacturing Company on Their

Question 95

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Fred Adams is employed by the Cedar Manufacturing Company on their assembly line.Fred is paid $15 per hour for regular time,and time-and-a-half for all work in excess of 40 hours per week.During the two weeks of the pay period just completed,Fred reported the following:
 Week 1:  Idle time due to machine breakdowns 3 hours  Idle time due to material shortages 2 hours  Overtime  None  Week 2:  Idle time  None  Overtime 9 hours \begin{array}{|l|c|}\hline \text { Week 1: } & \\\hline \text { Idle time due to machine breakdowns } & 3 \text { hours } \\\hline \text { Idle time due to material shortages } & 2 \text { hours } \\\hline \text { Overtime } & \text { None } \\\hline\\\hline \text { Week 2: } & \\\hline \text { Idle time } & \text { None } \\\hline \text { Overtime } & 9 \text { hours } \\\hline\end{array}
Required:
Compute Fred's wages for each week and allocate Fred's wages for each week between direct labour cost and manufacturing overhead.

Correct Answer:

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Week 1:
Fred's wages equal 40 hours * $1...

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