Rob is a quality inspector on the assembly line of a manufacturing company. He is paid P16 per hour for regular time and time and a half for all work in excess of 40 hours per week. He is classified as a direct labor worker. Rob's employer offers fringe benefits that cost the company P4 for each hour of employee time (both regular and overtime). During a given week, Rob works 45 hours but is idle for 2 hours due to material shortages. The company treats all fringe benefits relating to direct labor as added direct labor cost and the remainder as part of manufacturing overhead. How much of the worker's wages for the week would be classified as manufacturing overhead?

PAYROLL ACCT.,2019 ED.(LL)-TEXT
19th Edition
ISBN:9781337619783
Author:BIEG
Publisher:BIEG
Chapter2: Computing Wages And Salaries
Section: Chapter Questions
Problem 16PA
icon
Related questions
Question

Rob is a quality inspector on the assembly line of a manufacturing company. He is paid P16 per
hour for regular time and time and a half for all work in excess of 40 hours per week. He is
classified as a direct labor worker.

Rob's employer offers fringe benefits that cost the company P4 for each hour of employee
time (both regular and overtime). During a given week, Rob works 45 hours but is idle for 2
hours due to material shortages. The company treats all fringe benefits relating to direct labor as
added direct labor cost and the remainder as part of manufacturing overhead.

How much of the worker's wages for the week would be classified as manufacturing overhead?

Expert Solution
steps

Step by step

Solved in 2 steps with 1 images

Blurred answer
Knowledge Booster
Fair labor standards act (FLSA)
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
PAYROLL ACCT., 2019 ED.(LL)-TEXT
PAYROLL ACCT., 2019 ED.(LL)-TEXT
Accounting
ISBN:
9781337619783
Author:
BIEG
Publisher:
CENGAGE L