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Wendy Works on the Assembly Line of a Manufacturing Company

Question 19

Multiple Choice

Wendy works on the assembly line of a manufacturing company where she installs a component part for one of the company's products. She is paid $20 per hour for regular time and time and a half for all work in excess of 40 hours per week.
-Wendy's employer offers fringe benefits that cost the company $3 for each hour of employee time (both regular and overtime) .During a given week,Wendy works 42 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 Wendy's wages and fringe benefits for the week between direct labor cost and manufacturing overhead would be: Wendy works on the assembly line of a manufacturing company where she installs a component part for one of the company's products. She is paid $20 per hour for regular time and time and a half for all work in excess of 40 hours per week. -Wendy's employer offers fringe benefits that cost the company $3 for each hour of employee time (both regular and overtime) .During a given week,Wendy works 42 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 Wendy's wages and fringe benefits for the week between direct labor cost and manufacturing overhead would be:   A) Option A B) Option B C) Option C D) Option D


A) Option A
B) Option B
C) Option C
D) Option D

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