Tony worked 48 hours last week for Bread Works Manufacturing. Of the 48 hours 5 hours...
Tony worked 48 hours last week for Bread Works Manufacturing. Of the 48 hours 5 hours were considered overtime, and also Tony was idle for 4 of the 48 hours due to an equipment malfunction. Tony makes $50 per hour and is paid $75 an hour (time and a half) for overtime. Tony's total compensation for that week would be ______, and assuming Bread Works charges overtime premium and idle time to indirect labor, the amount of this compensation credited to indirect labor would be ___
a) $2,950; $325
b) $2,500; $350
c) $2,900; $280
d) $2,750; $300
e) #2,525; $325
Homework Answers
Answer : e)
Explanation for the answer given below,
Total compensation (43× $50) + (5 × $75) = $2,525 {for normal hour rate is $50 and for overtime rate is $75)
Indirect labour = (4 × $50) + (5 × $25) = $325
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