Becky works on the assembly line of a manufacturing company where she installs a component part for one of the company’s products. She’s pain $16 per hour for regular time, and time and a half for all work in excess of 40 hours per week. Becky’s employer offers fringe benefits that costs the company $3 for each hour of employee time (both regular and overtime.) During a given week, Becky works 42 hours but is idle for 3 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. The allocation of Becky’s wages and fringe benefits for the week between direct labor cost and manufacturing overhead would be which of the following
A)Direct labor:$688/Manufacturing overhead:$126
B)Direct labor:$741/Manufacturing overhead:$73
C)Direct labor:$672/Manufacturing overhead:$142
D)Direct labor:$624/Manufacturing overhead:$190
You don’t really have to tell me the answer, I really want to know how to solve the problem. Thanks!