EXERCISE 2-13 (15 MINUTES)

1. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH02 COST TERMS CONCEPT AND CLASSIFICATIONS
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH02 COST TERMS CONCEPT AND CLASSIFICATIONS

1. Total wages for the week:

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

Overtime: 6 hours × $30 per hour ... 180

Total wages... $980

Allocation of total wages:

Direct labor: 46 hours × $20 per hour... $920

Manufacturing overhead: 6 hours × $10 per hour ... 60