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Hamada is paid $20 an hour for straight-time and $30 an hour for overtime
Hamada is paid $20 an hour for straight-time and $30 an hour for overtime. One week he worked 43 hours, which included 3 hours of overtime.
Instructions:
?a.?What is Hamada’s total compensation for the week?
?b.?What amount of compensation would be reported as direct manufacturing labor?
?c.?What amount of compensation would be reported as manufacturing overhead?
Expert Solution
a) Hamada’s total compensation for the week
Straight time = (43 hours - 3 hours) * $20 = $800
Overtime = 3 hours * $30 = $90
Hamada’s total compensation for the week = $800 + $90 = $890
b) Direct manufacturing labor
(43 hours * $20) = $860
c) Manufacturing overhead
[3 hours * ($30-$20)] = $30
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