Question: Kaleidoscope Cutlery manufactures kitchen knives One of the employees whose

Kaleidoscope Cutlery manufactures kitchen knives. One of the employees, whose job is to cut out wooden knife handles worked 49 hours during a week in January. The employee earns $14 per hour for a 40—hour week. For additional hours the employee is paid an overtime rate of $19 per hour. The employee’s time was spent as follows:
Regular duties involving cutting out knife handles . . . . . . . . . . . . . . . 41 hours
General shop cleanup duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 hours
Idle time due to power outage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 hours

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)




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  • CreatedApril 22, 2014
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