Bob is a quality inspector on the assembly line of a manufacturing company. He is paid $16 per hour for regular time and time and a half for all work in excess of 40 hours per week. He is classified as a direct labor worker.
-Bob's employer offers fringe benefits that cost the company $4 for each hour of employee time (both regular and overtime). During a given week, Bob works 45 hours but is idle for 2 hours due to material shortages. The company treats all fringe benefits relating to direct labor as added direct labor cost and the remainder as part of manufacturing overhead. The allocation of Bob's wages and fringe benefits for the week between direct labor cost and manufacturing overhead would be:
A) Choice A
B) Choice B
C) Choice C
D) Choice D

Question

Bob is a quality inspector on the assembly line of a manufacturing company. He is paid $16 per hour for regular time and time and a half for all work in excess of 40 hours per week. He is classified as a direct labor worker.
-Bob's employer offers fringe benefits that cost the company $4 for each hour of employee time (both regular and overtime). During a given week, Bob works 45 hours but is idle for 2 hours due to material shortages. The company treats all fringe benefits relating to direct labor as added direct labor cost and the remainder as part of manufacturing overhead. The allocation of Bob's wages and fringe benefits for the week between direct labor cost and manufacturing overhead would be: 
A) Choice A 
B) Choice B 
C) Choice C 
D) Choice D

Quizplus · Accepted Answer

The Answer is C

Bob Is a Quality Inspector on the Assembly Line of a Manufacturing