Lou Marinaro worked 44 hours last week for Breakbad Manufacturing. Of the 44 hours 4 hours were considered overtime, and also Marinaro was idle for 5 of the 44 hours due to an equipment malfunction. Marinaro makes $40 per hour and is paid $60 an hour (time and a half)for overtime. Marinaro's total compensation for that week would be ________, and assuming Breakbad charges overtime premium and idle time to indirect labor, the amount of this compensation credited to indirect labor would be ________.
A)$1,680; $80
B)$1,680; $280
C)$1,840; $80
D)$1,840; $280

Question

Quizplus · Accepted Answer

Marinaro's total compensation is calculated as follows: Regular pay for 40 hours at $40/hour = $1,600. Overtime pay for 4 hours at $60/hour = $240. Total compensation = $1,600 + $240 = $1,840. The overtime premium (extra $20/hour for 4 hours) is $80, and the idle time (5 hours at $40/hour) is $200. Therefore, the amount credited to indirect labor is $80 + $200 = $280.

Lou Marinaro Worked 44 Hours Last Week for Breakbad Manufacturing