Johnson is employed on the assembly line of a manufacturing company where he assembles a component part for one of the company”s products. He is paid $14 per hour for regular time and time and a half for all work in excess of 40 hours per week. During the past week, Johnson worked a total of 50 hours and had no idle time. The allocation of Johnson”s wages for the past week between direct labor cost and manufacturing overhead cost would be:
|
|
|
Manufacturing |
|
|
Direct Labor |
Overhead |
|
A) |
$770 |
$0 |
|
B) |
$700 |
$70 |
|
C) |
$560 |
$210 |
|
D) |
$560 |
$0 |