Jan Davis is employed by Wesley Limited. Last week she worked 48 hours assembling one of the company's products. Wesley's employees work a 40-hour week and Davis is paid $24 per hour. Employees are paid time and a half for any hours worked in excess of the standard 40 hours. Assume the overtime is the result of an overall increase in demand for all products.

Required:

1. Allocate Davis's wages for the week between direct labour cost and manufacturing overhead cost.

2. How would your answer to part (I) have changed if the overtime was incurred to meet a rush order for a particular customer?

3. Now assume that in a different 40-hour week, Davis had 35 hours where she was actually working but was idle 5 hours due to scheduled maintenance on the production equipment. Allocate Davis 's wages for the week between direct labour cost and manufacturing overhead cost.