Tuesday, May 24, 2011

Brenda Hicks is paid $10 an hour for straight-time and $15 an hour for overtime

ACCOUNTING

Multiple Choice

Brenda Hicks is paid $10 an hour for straight-time and $15 an hour for overtime. One week she worked 42 hours, which included 2 hours of overtime. Compensation would be reported as

a. $400 of direct labor and $30 of manufacturing overhead

b. $400 of direct labor and $zero of manufacturing overhead

c. $420 of direct labor and $10 of manufacturing overhead

d. $430 of direct labor and $zero of manufacturing overhead

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