Louis Lippart is a fine worker in the assembly department of McClain Manufacturing. He normally earns $14 per hour, but gets time and a half ($21 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 Louis has to wait for the mechanics to repair the equipment or there is a scheduling mix-up. Louis is paid for this time and McClain considers this idle time. In May, Louis worked two 45-hour weeks, one 46 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 Louis had three hours 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 Louis in May. (Round your answers to the nearest cont.) 2. is idle time and overtime premium a direct or indirect cost of the jobs that Louis worked on in May? Explain
Louis Lippart is a fine worker in the assembly department of McClain Manufacturing. He normally earns $14 per hour, but gets time and a half ($21 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 Louis has to wait for the mechanics to repair the equipment or there is a scheduling mix-up. Louis is paid for this time and McClain considers this idle time. In May, Louis worked two 45-hour weeks, one 46 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 Louis had three hours 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 Louis in May. (Round your answers to the nearest cont.) 2. is idle time and overtime premium a direct or indirect cost of the jobs that Louis worked on in May? Explain
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:Louis Lippart is a line worker in the assembly department of McClain Manufacturing. He normally earns $14 per hour, but gets time and a half ($21 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 Louis has to wait for the mechanics to repair the equipment or there is a scheduling mix-up. Louis is paid for
this time and McClain considers this idle time.
In May, Louis worked two 45-hour weeks, one 46 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 Louis had three hours 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 Louis 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 Louis worked on in May? Explain
Ema
Requirement 1
(a) Determine the formula for calculating total direct manufacturing labour cout. Choose the correct answer below.
OA. (Total hours for month - Total idle time for month) x Overtime premium rate - Direct mig labour costs
OB. (Total overtime for month - Total idle time for month) x Regular hourly rate= Direct mfg labour costs
▸
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