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Assume all laborers earn a straight time wage of $10.00 per hour. Next to each of the following independent overtime situations, list the amount per hour that should be treated as indirect labor versus direct labor. You must account for the regular wage and any overtime premium. It is possible for the correct amount to be $0.00.
1. A direct laborer works overtime and earns time and a half overtime. No specific job is deemed to be the cause of the overtime. Hourly wage treated as INDIRECT LABOR: Hourly wage treated as DIRECT LABOR:
2. A direct laborer works overtime and earns double time overtime. A specific job is deemed to be the cause of the overtime. Hourly wage treated as INDIRECT LABOR: Hourly wage treated as DIRECT LABOR:
3. An indirect laborer works overtime and earns time and a half overtime. Hourly wage treated as INDIRECT LABOR: Hourly wage treated as DIRECT LABOR:
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