Jacobs is employed as a machinist for an aircraft manufacturer. She is paid $15 per hour for regular time and time and a half for all work in excess of 40 hours per week. During the past week, Jacobs was idle for two hours due to machine breakdowns and was idle four hours due to materials shortages. Jacobs worked 40 hours last week with no overtime. The allocation of Jacobs” wages for the past week between direct labor cost and manufacturing overhead cost would be:
|
|
Direct |
Manufacturing |
|
|
Labor |
Overhead |
|
A) |
$600 |
$0 |
|
B) |
$570 |
$30 |
|
C) |
$540 |
$60 |
|
D) |
$510 |
$90 |