Rob is a quality inspector on the assembly line of a manufacturing company. He is paid P16 per hour for regular time and time and a half for all work in excess of 40 hours per week. He is classified as a direct labor worker. Rob's employer offers fringe benefits that cost the company P4 for each hour of employee time (both regular and overtime). During a given week, Rob works 45 hours but is idle for 2 hours due to material shortages. The company treats all fringe benefits as part of manufacturing overhead. How much of the worker's wages for the week would be classified as direct labor cost?
Rob is a quality inspector on the assembly line of a manufacturing company. He is paid P16 per hour for regular time and time and a half for all work in excess of 40 hours per week. He is classified as a direct labor worker. Rob's employer offers fringe benefits that cost the company P4 for each hour of employee time (both regular and overtime). During a given week, Rob works 45 hours but is idle for 2 hours due to material shortages. The company treats all fringe benefits as part of manufacturing overhead. How much of the worker's wages for the week would be classified as direct labor cost?
College Accounting (Book Only): A Career Approach
12th Edition
ISBN:9781305084087
Author:Cathy J. Scott
Publisher:Cathy J. Scott
Chapter7: Employee Earnings And Deductions
Section: Chapter Questions
Problem 5PB
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Question
Rob is a quality inspector on the assembly line of a manufacturing company. He is paid P16 per
hour for regular time and time and a half for all work in excess of 40 hours per week. He is
classified as a direct labor worker.
Rob's employer offers
time (both regular and overtime). During a given week, Rob works 45 hours but is idle for 2
hours due to material shortages. The company treats all fringe benefits as part of manufacturing
overhead.
How much of the worker's wages for the week would be classified as direct labor cost?
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