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In the Manufacturing Plant,Margaret Thorpe Is Paid $20 an Hour

Question 318

Essay

In the manufacturing plant,Margaret Thorpe is paid $20 an hour for straight-time and $30 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 Margaret's total compensation for the week?
b.What amount of compensation would be reported as direct manufacturing labour?
c.What amount of compensation would be reported as manufacturing overhead?
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Correct Answer:

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a.Direct manufacturing labour (42 hours ...

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