EXERCISE 2-13 (15 MINUTES)

2. Total wages for the week:

Regular time: 40 hours × $20 per hour ... $ 800

Overtime: 8 hours × $30 per hour ... 240

Total wages... $1,040

Allocation of total wages:

Direct labor: 45 hours × $20 per hour... $ 900

Manufacturing overhead:

Idle time: 3 hours × $20 per hour ... $60

Overtime premium: 8 hours × $10 per hour... 80 140