Problem 2-46 Overtime Premiums and Fringe Benefit Costs; Airline (LO 2-1, 2-3, 2-5, 2-9, 2-10)

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Heartland Airways operates commuter flights in three Midwestern states. Due to a political convention held in Topeka, the airline added several extra flights during a two-week period. Additional cabin crews were hired on a temporary basis. However, rather than hiring additional flight attendants, the airline used its current attendants on overtime. Monica Gaines worked the following schedule on August 10. All of Gaines's flights on that day were extra flights that the airline would not normally fly.

Regular time:2 round-trip flights between Topeka and St. Louis (8 hours)Overtime:1 one-way flight from Topeka to Kansas City (3 hours)

Gaines earns $14 per hour and is paid time and a half when working overtime. Fringe benefits cost the airline $3 per hour for any hour worked, regardless of whether it is a regular or overtime hour.

Problem 2-46 Part 1

Required:

1.Compute the direct cost of compensating Gaines for her services on the flight from Topeka to Kansas City.