A warehouse assistant for an office furniture wholesaler worked a normal 38-hour week, but six hours were idle due to a small fire in the warehouse. 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 labour cost? How much is manufacturing overhead? Why?

3. Under what circumstances would the normal weekly wage for this employee be treated as an indirect labour cost?

Answer rating: 100% (QA)

Part 1 38 Hours29 per week 11... View the full answer