Highlander Cutlery manufactures kitchen knives. One of the employees, whose job is to cut out wooden knife handles, worked 53 hours during a week in January. The employee earns $16 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 $21 per hour. The employees time was spent as follows:

Regular duties involving cutting out knife handles	45	hours
General shop cleanup duties	5	hours
Idle time due to power outage	3	hours

Required:

1. Calculate the total cost of the employees 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. manufactoring overhead (idle time)

c. manufacturing overhead (overtime premium)

d manufactoring overhead (indirect labor)

total cost of wages: