Dunkin Donuts operates in two shifts, paying a late-shift premium of 10 percent and an overtime premium of 75 percent. The May 2020 payroll follows: Total wages for 3,000 hours ₱24,000 Normal hourly employee wage 8 Total regular hours worked, split evenly between the shifts 2,500 All overtime was worked by the early shift during May. Shift and overtime premiums are considered part of overhead rather than direct labor. a. How many overtime hours were worked in May? b. How much of the total labor cost should be charged to direct labor? To overhead? c. What amount of overhead was for second-shift premiums? For overtime premiums?
Dunkin Donuts operates in two shifts, paying a late-shift premium of 10 percent and an overtime premium of 75 percent. The May 2020 payroll follows: Total wages for 3,000 hours ₱24,000 Normal hourly employee wage 8 Total regular hours worked, split evenly between the shifts 2,500 All overtime was worked by the early shift during May. Shift and overtime premiums are considered part of overhead rather than direct labor. a. How many overtime hours were worked in May? b. How much of the total labor cost should be charged to direct labor? To overhead? c. What amount of overhead was for second-shift premiums? For overtime premiums?
Chapter2: Computing Wages And Salaries
Section: Chapter Questions
Problem 11PA: Potts, Inc., recently converted from a 5-day, 40-hour workweek to a 4-day, 40-hour workweek, with...
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Dunkin Donuts operates in two shifts, paying a late-shift premium of 10 percent and an overtime premium of 75 percent. The May 2020 payroll follows:
Total wages for 3,000 hours ₱24,000
Normal hourly employee wage 8
Total regular hours worked,
split evenly between the shifts 2,500
All overtime was worked by the early shift during May. Shift and overtime premiums are considered part of overhead rather than direct labor.
a. How many overtime hours were worked in May?
b. How much of the total labor cost should be charged to direct labor? To overhead?
c. What amount of overhead was for second-shift premiums? For overtime premiums?
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