A foundry employee worked a normal 38 hour week, but six hours were idle due to a

Question:

A foundry employee worked a normal 38 hour week, but six hours were idle due to a small fire in the plant. The employee earns $29 per hour.

Required:

1. Calculate the employee's total wages for the week.

2. How much of this amount is a direct costs? How much is manufacturing overhead? Why?

3. Under what circumstances would the weekly wage for this employee be treated as an indirect labour costs?

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Related Book For  book-img-for-question

Management Accounting

ISBN: 9781760421144

7th Edition

Authors: Kim Langfield Smith, Helen Thorne, David Alan Smith, Ronald W. Hilton

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