Chapter 3B - Solution Manual

Chapter 3B - Solution Manual - Chapter 3B Further...

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Chapter 3B Further Classification of Labor Costs Appendix 3B Further Classification of Labor Costs Exercise 3B-1  (10 minutes) Direct labor (36 hours × $18 per hour). ............ $648 Manufacturing overhead (idle time: 4 hours × $18 per hour). .............    72 Total wages earned. ......................................... $720 Exercise 3B-2  (10 minutes) Direct labor (46 hours × $16 per hour). ............ $736 Manufacturing overhead (overtime: 6 hours × $8 per hour). ...............    48 Total wages earned. ........................................ $784 Exercise 3B-3  (15 minutes) 1. No. It appears that the overtime spent completing the job was simply a  matter of how the job happened to be scheduled. Under these  circumstances, an overtime premium probably should not be charged to  a customer whose job happens to fall at the tail end of the day’s  schedule. 2. Direct labor: 9 hours × $20 per hour. ................. $180 General overhead: 1 hour × $10 per hour. ........       10     Total labor cost. ................................................. $190 3. A charge for an overtime premium might be justified if the customer 
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Chapter 3B - Solution Manual - Chapter 3B Further...

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