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:

  1. Calculate the machine operators total wages for the week.

  2. Calculate the operators total overtime premium for the week.

  3. How much of the operators total wages for the week is direct labour cost? How much is overhead? Explain why.

  4. Under what circumstances would the normal hourly rate be treated as an indirect labour cost?

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