EXERCISE 2-13 (15 MINUTES)

4. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH02 COST TERMS CONCEPT AND CLASSIFICATIONS 4. - SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH02 COST TERMS CONCEPT AND CLASSIFICATIONS
SOLUTIONS TO QUESTION MANAGERIAL ACCOUNTING CH02 COST TERMS CONCEPT AND CLASSIFICATIONS

4. Allocation of wages and fringe benefits:

Direct labor:

Wage cost: 48 hours × $20 per hour... $960

Fringe benefits: 48 hours × $6 per hour ... 288 $1,248

Manufacturing overhead:

Idle time: 2 hours × $20 per hour ... 40

Overtime premium: 10 hours × $10 per hour ... 100

Fringe benefits: 2 hours × $6 per hour ... 12 152

Total wages and fringe benefits ... $1,400

Problem 2-18 (60 minutes)