Dave Rigby is paid $30 an hour for straight-time and $40 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.What is the direct labor cost incurred to the company?
A) $1,260
B) $1,400
C) $1,310
D) $1,210

Question

Quizplus · Accepted Answer

Dave worked 45 hours, including 5 hours of overtime. So, he worked 40 hours of straight-time. Straight-time pay = 40 hours * $30/hour = $1,200Overtime pay = 5 hours * $40/hour = $200Total direct labor cost = $1,200 + $200 = $1,400

Dave Rigby Is Paid $30 an Hour for Straight-Time and $40