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HANDOUT I 3-20 Payroll: direct and indirect labour J. Brown worked for 46 hours during the pay week ending.Friday April 24. His normal working

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HANDOUT I 3-20 Payroll: direct and indirect labour J. Brown worked for 46 hours during the pay week ending.Friday April 24. His normal working week consists of 35 hours, of which 31 hours were spent on production while the remaining 4 hours were non-productive idle time. Brown worked 3 hours overtime at a premium of 50% on Monday April 20 because a customer required work finished by Tuesday April 21 even if overtime had to be worked to complete it. Brown worked a further 8 hours over time on Wednesday April 22 on other production. It is the policy of the company to pay an overtime premium of 100% after the first 3 hours on any one day. Brown's normal wage Fair is $8 per hour. Required: (a) Calculate Brown's gross pay for the week. (b) Indicate the sum to-be treated as indirect labour.

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