Tony worked 48 hours last week for Bread Works Manufacturing.Of the 48 hours 5 hours were considered overtime,and also Tony was idle for 4 of the 48 hours due to an equipment malfunction.Tony makes $50 per hour and is paid $75 an hour (time and a half)for overtime.Tony's total compensation for that week would be ________,and assuming Bread Works charges overtime premium and idle time to indirect labor,the amount of this compensation credited to indirect labor would be ________.
A) $2,950; $325
B) $2,900; $280
C) $2,750; $300
D) $2,500; $350

Question

Quizplus · Accepted Answer

To calculate Tony's total compensation, we need to first calculate his regular pay and overtime pay separately.

Regular Pay: 
Tony worked 48 hours, and 5 of those were overtime. So he worked (48-5=) 43 hours at his regular pay rate.
43 hours x $50/hour = $2,150

Overtime Pay: 
Tony worked 5 hours of overtime, and he gets paid time and a half for overtime. So his overtime pay would be:
5 hours x $75/hour = $375

Total Compensation: 
To find Tony's total compensation, we need to add his regular pay and overtime pay together and then subtract the idle time pay.
$2,150 (regular pay) + $375 (overtime pay) = $2,525
$2,525 - ($50/hour x 4 hours idle time) = $2,325

Therefore, Tony's total compensation for the week would be $2,325.
Now, assuming Bread Works charges overtime premium and idle time to indirect labor, we need to subtract the overtime pay and idle time pay from Tony's total compensation to find the amount credited to indirect labor.
$2,325 - $375 (overtime pay) - ($50/hour x 4 hours idle time) = $2,325 - $375 - $200 = $1,750
Therefore, the amount of Tony's compensation credited to indirect labor would be $1,750.

Tony Worked 48 Hours Last Week for Bread Works Manufacturing