(SOLVED)- A foundry employee worked a normal 38 hour week but


Question Description:

$20

A foundry employee worked a normal 38 hour week, but six hours were idle due to a small fire in the plant. The employee earns $29 per hour.
Required:
1. Calculate the employee’s total wages for the week.
2. How much of this amount is a direct costs? How much is manufacturing overhead? Why?
3. Under what circumstances would the weekly wage for this employee be treated as an indirect labour costs?

Answer

$20