Highlander Cutlery manufactures kitchen knives. One of the employees, whose job is to cut out wooden knife handles, worked 45 hours during a week in January. The employee earns $12 per hour for a 40-hour week, and overtime is paid after 40 hours. For additional hours, the employee is paid an overtime rate of $18 per hour. The employees time was spent as follows: Regular duties involving cutting out knife handles 37 hours General shop cleanup duties 4 hours Idle time due to power outage 4 hours

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)
	Total cost of wages