Jan Davis is employed by Wesley Limited. Last week she worked 48 hours assembling one of the companys products. Wesleys employees work a 40-hour week and Davis is paid $24 per hour. Employees are paid time and a half for any hours worked in excess of the standard 40 hours. Assume the overtime is the result of an overall increase in demand for all products.

Required:

1. Allocate Daviss wages for the week between direct labour cost and manufacturing overhead cost.

direct labour cost : Manufacturing cost : total wages earned :

2. How would your answer to part (1) have changed if the overtime was incurred to meet a rush order for a particular customer?

Had the overtime been incurred to meet a rush order for a particular client then ______________ would have been treated as a direct labor.

3. Now assume that in a different 40-hour week, Davis had 35 hours where she was actually working but was idle 5 hours due to scheduled maintenance on the production equipment. Allocate Daviss wages for the week between direct labour cost and manufacturing overhead cost.

direct labour cost : Manufacturing cost : total wages earned :