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In the Manufacturing Plant, Terri Bird Is Paid $40 an Hour

Question 183

Essay

In the manufacturing plant, Terri Bird is paid $40 an hour for straight-time and $60 an hour for overtime. One week she worked 46 hours, which included 6 hours of overtime, and 4 hours of idle time caused by material shortages.
Required:
a. What is Leslie's total compensation for the week?
b. What amount of compensation would be reported as direct manufacturing labor?
c. What amount of compensation would be reported as manufacturing overhead?

Correct Answer:

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a. Direct manufacturing labor (42 hours ...

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