Woodlands Restaurant Supply operates in two shifts, paying a late-shift premium of 10 percent and an overtime
Question:
Total wages for 6,000 hours ................ $54,000
Normal hourly employee wage ............... $9
Total regular hours worked, split evenly between the shifts .... 5,000
All overtime was worked by the early shift during May. Shift and overtime premiums are considered part of overhead rather than direct labor.
a. How many overtime hours were worked in May?
b. How much of the total labor cost should be charged to direct labor? To overhead?
c. What amount of overhead was for second-shift premiums? For overtime premiums?
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Related Book For
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn
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