During the first week of April, Gillian worked a total of 50 hours and had no idle time. Gillian is paid $15 per hour for regular time, and is paid time-and-a-half for all hours in excess of a 40 hour week. The amount of Gillian's wages that should be charged to direct labor for the week is:
A) $600
B) $225
C) $750
D) $975

Question

Quizplus · Accepted Answer

Gillian worked 50 hours, so she worked 10 hours of overtime (50-40). 
Thus, her regular pay is 40 hours x $15/hour = $600.
For the overtime pay, she gets time-and-a-half, which is $22.50/hour ($15 + ($15/2)).
Therefore, her overtime pay is 10 hours x $22.50/hour = $225.
So, her total wages for the week are $600 + $225 = $825.
Since there was no idle time, all of her wages can be charged to direct labor, so $825 should be charged to direct labor.

During the First Week of April, Gillian Worked a Total