A direct labor worker at Langill Corporation is paid $16 per hour for regular time and time and a half for all work in excess of 40 hours per week. This employee works 49 hours in a given week but is idle for 4 hours during the week due to equipment breakdowns.
Required:
Determine how much of the worker's wages for the week would be classified as direct labor cost and how much would be classified as manufacturing overhead cost. Show your work.
Correct Answer:
Verified
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