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Required information Problem 2-44 Direct and Indirect Labor (LO 2-1, 2-3, 2-5, 2-9) [The following information applies to the questions displayed below.] Highlander Cutlery manufactures kitchen knives. One of the employees, whose job is to cut out wooden knife handles, worked 46 hours during a week in January. The employee earns $16 per hour for a 40-hour week, and overtime is paid after 40 hours. For additional hours, the employee is paid an overtime rate of $24 per hour. The employee's time was spent as follows: Regular duties involving cutting out knife handles General shop cleanup duties Idle time due to power outage 38 hours 4 hours 4 hours Problem 2-44 Part 2 2. Determine the portion of this cost to be classified in each of the following categories: $ 832 96 a. Direct labor b. Manufacturing overhead (idle time) c. Manufacturing overhead (overtime premium) d. Manufacturing overhead (indirect labor) Total cost of wages 96 $ 1,024