Allocations of the Cost of Idle Time
Chris Shannon is employed by Acme Company and is paid $18 per hour. Last week she worked 36 hours assembling one of the company's products and was idle 4 hours due to material shortages. Acme's employees are engaged at their workstations for a normal 40-hour week.
Required:
Allocate Ms. Shannon's earnings for the week between direct labor and manufacturing overhead.
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