• Question 1
• Question 2
• Question 3
• Question 4
• Question 5

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Part 1

Len

Lippart is a line worker in the assembly department of

Maxart

Manufacturing. He normally earns

$12

per hour, but gets time and a half

($18

per hour) for overtime, over 40 hours per week. He earns double time if he works holidays even if he has not worked 40 hours that week.

Sometimes the assembly-line equipment goes down and

Len

has to wait for the mechanics to repair the equipment or there is a scheduling mix-up.

Len

is paid for this time and

Maxart

considers this idle time.

In May,

Len

worked two

42-hour

weeks, one

43

hour week, and the last week he worked 40 hours, but one of those days was a national holiday. During regular hours, the assembly-line equipment was down

4.2

hours in May, and

Len

had

onehour

of idle time because of a scheduling mix-up.

Requirements

1.	Calculate (a) direct manufacturing labour, (b) idle time, (c) overtime holiday premium, and (d) total earnings for Len in May. (Round your answers to the nearest cent.)
2.	Is idle time and overtime premium a direct or indirect cost of the jobs that Len worked on in May? Explain.