Joel Williams works at Allentown Company where he assembles components for small appliances and earns $16 per hour with "time-an-a-half" for overtime.During the week ended July 25,Joel worked 43 hours as follows: The amount of Joel's wages that will be charged to Factory Overhead assuming the overtime is due to the random scheduling of jobs is:
A)$120
B)$152
C)$40
D)$128

Question

Joel Williams works at Allentown Company where he assembles components for small appliances and earns $16 per hour with "time-an-a-half" for overtime.During the week ended July 25,Joel worked 43 hours as follows:  The amount of Joel's wages that will be charged to Factory Overhead assuming the overtime is due to the random scheduling of jobs is:
A)$120 
B)$152 
C)$40 
D)$128

Quizplus · Accepted Answer

Regular hours = 40 hours x $16/hour = $640
Overtime hours = 3 hours x $24/hour ($16 x 1.5) = $72
Total wages = $640 + $72 = $712
However, since the overtime is due to random scheduling of jobs, the extra cost should be charged to Factory Overhead. Therefore, the amount of Joel's wages charged to Factory Overhead is $72, which is option B.

Joel Williams Works at Allentown Company Where He Assembles Components