Kaleidoscope Cutlery manufactureskitchen knives. One of the employees, whose job

Question

Kaleidoscope Cutlery manufactureskitchen knives. One of the employees, whose job is to cut outwooden knife handles, worked 49 hours during a week in January. Theemployee earns $14 per hour for a 40-hour week. For additionalhours the employee is paid an overtime rate of $19 per hour. Theemployee's time was spent as follows:

Regular duties involving cutting out knife handles

41

hours

General shop cleanup duties

6

hours

Idle time due to power outage

2

hour

Regular duties involving cutting out knife handles

41

hours

General shop cleanup duties

6

hours

Idle time due to power outage

2

hour

Explanation / Answer

a. Total cost of employees'wages (40 hours X $14) + (9 hours X $ 19) $560 + $171 $731 B. Direct labour 40 hours X $14 + 1 hours X $19 $560 + $19 $579 Manufacturing overhead (idletime) 2 hour X $14 $28 Manufacturing overhead (overtimepremium) 9 hours X $19 $171 Manufacturing overhead (indirectlabour) 8 hours X $ 19 $152

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