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On the Assembly Floor, Cynthia Evans Is Paid $20 an Hour

Question 61

Essay

On the assembly floor, Cynthia Evans is paid $20 an hour for straight-time and $30 an hour for overtime. One week she worked 43 hours, which included 3 hours of overtime.
Required:
a. What is Cynthia's total compensation for the week?
b. What amount of compensation would be reported as direct manufacturing labor?
c. What amount of compensation would be reported as manufacturing overhead?

Correct Answer:

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a. Direct labor (43 hours × $2...

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