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

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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1 Hours worked 38 Wage rate 29 Total wages 1102 2 Classification Direct labour 32 hours29 9... View full answer

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