Marrell is employed on the assembly line of a manufacturing company where she assembles a component part for one of the company”s products. She is paid $16 per hour for regular time and time and a half for all work in excess of 40 hours per week. Marrell”s employer offers fringe benefits that cost the company $4 for each hour of employee time (either regular or overtime). During a given week, Marrell works 48 hours but is idle for 3 hours due to material shortages. The company treats all fringe benefits as part of manufacturing overhead. The allocation of Marrell”s wages for the week between the direct labor cost and manufacturing overhead would be:
|
|
|
Manufacturing |
|
|
Direct Labor |
Overhead |
|
A) |
$960 |
$64 |
|
B) |
$768 |
$256 |
|
C) |
$720 |
$304 |
|
D) |
$640 |
$320 |