Overtime Cost
A loom operator in a textiles factory earns $16 per hour. By contract, the employee earns $20 for overtime hours. The operator worked 45 hours during the first week of May, instead of the usual 40 hours.
Required:
1. Compute the loom operator's compensation for the week.
2. Calculate the employee's total overtime premium for the week.
3. How much of the employee's total compensation for the week is direct-labor cost? How much is overhead?
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