Joe Letterman works in the production department of New World Plastics (NWP) as

Question

Joe Letterman works in the production department of New World Plastics (NWP) as a machine operator, Joe, a long-time employee of NWP, is paid on an houry basis at a rate of $40 per hour Joe works five 8-hour shifts per week Monday-Friday (40 hours) Any time Joe works over and above these 40 hours is considered overtime for which he is paid at a rate of time and a half($60 per hour).the overtme falls on weekends. Joe is paid at a rate of double tirme ($80 per hour). Joeis also paid an addtional $40 per hour for any holidays worked, even if t is part of his regular 40 hours. Click the icon to view additional information and the hours Read the requirements Requirement 1. Calculate a) direct manufacturing labor (b) dle time 4c overtime and holiday premium, and (d) total eamings for Joe n December a) First determine the formula then enter the amounts to calculate total direct manufacturing labor cost (Abbreviations used: m g·manufacturing - Direct mig labor costs Weok 1 Week 2 Week 3 Week 4 (b) Select the labels, then enter the amounts to calculate total idile time costs. Idle time costs Week 1 Week 2 Week 3 Week 4 (c) Begin by determining the formula, then enter the amounts to calculate the total overtime and holiday premium costs. (For hours with a zero balance, make sure to enter "O in the appropriate cell.) Total overtime hoursx Overtime Holiday and holiday hours x Week 1 ( Week 2 ( Week 3( Week 4( (d) Calculate the total eamings for Joe in December. During the month of December, Joe Anderson had total gross earnings of S Requirement 2. Is idle time and overtime premium a drect or indirect cost of the product that Joe worked on in December? Explain. ldie tme caused by regular machine maintenance, slow order periods, or unexpected mechanical problems is an) related to a specific product Overtime premium caused by the heavy overall volume of work is a(n) during the overtime hours. If, however, the overtime is the resuilt of a demanding "rush job," the overtime premium is a(n) cost of the product because it cost because elated to a particular job that happened to be worked on cost of that job.

Explanation / Answer

1 (a) Direct manufacturing labor=(Total hours worked-Machine down time)*Hourly wage rate Direct Mfg Labor costs Week 1 (54-7)*40 1880 Week 2 (43-4.4)*40 1544 Week 3 (41-5.7)*40 1412 Week 4 (52-3.1)*40 1956 6792 (b) Idle time costs=Machine down time*Hourly wage rate Idle time costs Week 1 7*40 280 Week 2 4.4*40 176 Week 3 5.7*40 228 Week 4 3.1*40 124 808 © Overtime and Holiday premium cost=(Total overtime hours*Overtime premium rate)+(Holiday hours*Holiday premium rate) Overtime and Holiday premium cost Week 1 (54-40)*20 280 Week 2 (43-40)*20 60 Week 3 (41-40)*40 40 Week 4 [(52-40)*20+(2*8*40) 880 1260 (d) Total earnings: $ Direct Mfg Labor costs 6792 Idle time costs 808 Overtime and Holiday premium cost 1260 Total earnings 8860 2 Idle time caused by regular machine maintenance, slow order periods, or unexpectedmechanical problems is an indirect cost of the product because it is not related to a specific product. Overtime premium caused by the heavy overall volume of work is also an indirect cost because it is not related to a particular job that happened to be worked on during the overtime hours. If, however, the overtime is the result of a demanding “rush job,” the overtime premiumis a direct cost of that job.

Related Questions

Navigate

• Browse (All)
• Browse J
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.