Dave Rigby Is Paid $20 an Hour for Straight-Time and $30

Multiple Choice

Dave Rigby is paid $20 an hour for straight-time and $30 an hour for overtime. One week he worked 45 hours, which included 5 hours of overtime, and 3 hours of idle time caused by material shortages. Compensation would be reported as:

A) $740 of direct labor and $210 of manufacturing overhead
B) $840 of direct labor and $110 of manufacturing overhead
C) $900 of direct labor and $50 of manufacturing overhead
D) $890 of direct labor and $60 of manufacturing overhead