Calculate the total cost of the employees wages

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Highlander Cutlery manufactures kitchen knives. One of the employees, whose job is to cut out wooden knife handles, worked 48 hours during a week in January. The employee earns $12 per hour for a 40-hour week. For additional hours, the employee is paid an overtime rate of $16 per hour. The employee’s time was spent as follows:

Regular duties involving cutting out knife handles ......... 38 hours

General shop cleanup duties ................ . 9 hours

Idle time due to power outage ................. 1 hour

Required:

1. Calculate the total cost of the employee’s wages during the week described above.

2. Determine the portion of this cost to be classified in each of the following categories:

a. Direct labor

b. Manufacturing overhead (idle time)

c. Manufacturing overhead (overtime premium)

d. Manufacturing overhead (indirect labor)

Reference no: EM131454349

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