Question: An employee's basic wage is $15 per hour, and they are paid double for work over 40 hours a week. The company also provides fringe
An employee's basic wage is $15 per hour, and they are paid double for work over 40 hours a week. The company also provides fringe benefits worth $5 per hour (regular or overtime). In a recent week, the employee worked 49 hours. Of the 49 hours, 3 hours were idle due to scheduling problems, and 2 of the overtime hours were incurred on a rush job for a client who agreed to pay the any overtime wage premiums incurred. The company treats fringe benefits related to direct labour as a component of overhead.
What would be the allocation of the employee's total wages and benefits for the week to manufacturing overhead?
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