Becky works on the assembly line of a manufacturing company where she installs a component part for one of the company's products. She is paid $16 per hour for regular time and time and a half for all work in excess of 40 hours per week.
-Becky works 42 hours during a week in which there was no idle time. The allocation of Becky's wages for the week between direct labor cost and manufacturing overhead cost would be:
A) Choice A
B) Choice B
C) Choice C
D) Choice D

Question

Becky works on the assembly line of a manufacturing company where she installs a component part for one of the company's products. She is paid $16 per hour for regular time and time and a half for all work in excess of 40 hours per week.
-Becky works 42 hours during a week in which there was no idle time. The allocation of Becky's wages for the week between direct labor cost and manufacturing overhead cost would be: 
A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D

Quizplus · Accepted Answer

Becky is working on the assembly line which is a direct labor cost. Therefore, 100% of her wages should be allocated to direct labor cost. Since she worked 42 hours, her wages would be calculated as follows:
40 hours x $16/hour = $640
2 hours x $24/hour = $48
Total wages = $688
Therefore, the entire $688 should be allocated to direct labor cost.

Becky Works on the Assembly Line of a Manufacturing Company