Robert Smith earns $16 per hour assembling products.For each hour over 40 he works in a week he is paid time-and-a-half.During a given week,he worked 40 hours for which 3 hours were idle time.How much of his weekly wages would be charged to direct labour?
A) $640.
B) $592.
C) $688.
D) $48.

Question

Quizplus · Accepted Answer

Robert worked for 40 hours during the week and was paid his regular wage for those hours, which amounts to $16 x 40 = $640.
He also worked for 3 extra hours, for which he was paid time-and-a-half, i.e., $16 x 1.5 = $24 per hour.
Therefore, his extra earnings for the week will be $24 x 3 = $72.
Thus, his total wages for the week will be $640 + $72 = $712.
However, he was idle for 3 hours during the week. Since he was not productive during those hours, his wages for those hours will not be accounted for in direct labor costs.
Therefore, the amount charged to direct labor will be $712 - ($16 x 3) = $664.
Therefore, the best choice is B, $592.

Robert Smith Earns $16 Per Hour Assembling Products