Question: A machine operator in a textile factory earns $30 per hour, and $35 for each overtime hour. The operator worked 48 hours during the first
A machine operator in a textile factory earns $30 per hour, and $35 for each overtime hour. The operator worked 48 hours during the first week of May, instead of the normal working time of 38 hours.
Required:
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Calculate the machine operators total wages for the week.
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Calculate the operators total overtime premium for the week.
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How much of the operators total wages for the week is direct labour cost? How much is overhead? Explain why.
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Under what circumstances would the normal hourly rate be treated as an indirect labour cost?
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