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 relating to direct labor as added direct labor cost and the remainder 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 relating to direct labor as added direct labor cost and the remainder as part of manufacturing overhead. How much of the worker's wages for the week would be classified as direct labor cost?
Principles of Cost Accounting
17th Edition
ISBN:9781305087408
Author:Edward J. Vanderbeck, Maria R. Mitchell
Publisher:Edward J. Vanderbeck, Maria R. Mitchell
Chapter3: Accounting For Labor
Section: Chapter Questions
Problem 1E: R. Herbert of Crestview Manufacturing Co. is paid at the rate of 20 an hour for an eight-hour day,...
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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 relating to direct labor as
added direct labor cost and the remainder as part of manufacturing
How much of the worker's wages for the week would be classified as direct labor cost?
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