Robert Smith earns $6 per hour. For each hour over 40 he works, he is paid time-and-a-half. During a given week he worked 45 hours and had no idle time. How much of his weekly wages would be charged to the manufacturing overhead account?
A) $30
B) $45
C) $15
D) $0

Question

Quizplus · Accepted Answer

The overtime premium (time-and-a-half) is considered a manufacturing overhead cost. Robert worked 5 hours of overtime, and the premium is $3 per hour (half of $6), so $3 x 5 = $15 is charged to manufacturing overhead.

Robert Smith Earns $6 Per Hour