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Problem 2-44 Direct and Indirect Labor (LO 2-1, 2-3, 2-5, 2-9)

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[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 47 hours during a week in January. The employee earns $14 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 $21 per hour. The employees time was spent as follows:

Regular duties involving cutting out knife handles	39	hours
General shop cleanup duties	5	hours
Idle time due to power outage	3	hours

Required: 1. Calculate the total cost of the employees wages during the week described above.