Kaleidoscope Cutlery manufactures kitchen knives. One of the employees, whose job is to cut out wooden knife handles worked 49 hours during a week in January. The employee earns $14 per hour for a 40—hour week. For additional hours the employee is paid an overtime rate of $19 per hour. The employee’s time was spent as follows:

Regular duties involving cutting out knife handles . . . . . . . . . . . . . . . 41 hours

General shop cleanup duties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6 hours

Idle time due to power outage . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2 hours

Required:

1. Calculate the total cost of the employee’s wages during the week described above.

2. Determine the portion of this cost to be classified in each of the following categories:

a. Direct labor

b. Manufacturing overhead (idle time)

c. Manufacturing overhead (overtime premium)

d. Manufacturing overhead (indirect labor)