Rodney Worsham is paid $10 an hour for straight-time and $15 an hour for overtime

ACCOUNTING

Multiple Choice

Rodney Worsham is paid $10 an hour for straight-time and $15 an hour for overtime. One week he worked 45 hours, which included 5 hours of overtime, and 3 hours of idle time caused by material shortages. Compensation would be reported as

a. $370 of direct labor and $105 of manufacturing overhead

b. $420 of direct labor and $55 of manufacturing overhead

c. $450 of direct labor and $25 of manufacturing overhead

d. $445 of direct labor and $30 of manufacturing overhead


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