Gladnish Manufacturing Company operates two shifts of workers Day workers
Gladnish Manufacturing Company operates two shifts of workers. Day workers are paid $12 per hour; evening workers are paid a shift premium of 20 percent. Overtime premiums are 50 percent above day or evening wages. In August 2009, the following factory payroll information is available:
Total hours worked during the month
(70% by day; 30% by evening)................................. 18,000
Overtime hours worked during the month
(only by day workers) )............................................... 1,000
Required:
(a) What were the total wages paid to employees during the month?
(b) Of the amount in part (a), how much would be considered direct labor cost?
(c) Of the indirect labor cost, how much is for shift premiums and how much is for overtime premiums?
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