B. Calculate the Direct Labor cost per meat pizza. *For the meat pizzas, the number of employees is 50 and the pizzas per hour is 200, same for rate, fringe and total. (direct labor cost)
Assembly line workers (direct labor) are paid an hourly basis according to hours worked. If they work more than 8 hours a day, then they are entitled to an overtime premium of 50% of the basic hourly rate of $7.50 per hour. Supervisors and other indirect labor employees are salaried.
(remember the yellow cells already contain formulas)
• Assembly line workers (direct labor) $7.50 per hour (plus $2.50 per hour in
• Supervisor (including fringe benefits) $3,000
• Other Indirect labor (including fringe benefits) $2,000
B. Calculate the Direct Labor cost per meat pizza.
*For the meat pizzas, the number of employees is 50 and the pizzas per hour is 200, same for
rate, fringe and total. (direct labor cost)
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
