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Question (Part A) Ashels. Engineering Works Inc. employs two types of labor. skilled workers considered to be direct workers and semi-skilled workers considered to be
Question (Part A) Ashels. Engineering Works Inc. employs two types of labor. skilled workers considered to be direct workers and semi-skilled workers considered to be indirect workers. Skilled workers are paid $10 per hour and semi-skilled $7.50 per hour. All employees work a standard 35 hours a week. There are 7 skilled workers and 4 semi-skilled workers. The skilled workers altogether have worked 50 hours of overtime this week. The semi-skilled workers altogether have worked 20 hours of overtime to meet production requirements. All overtime hours are paid @ 150% of the hourly wage rate and are paid at the closing of the week. Required a) What are the total direct labor costs for the week? b) What are the total indirect labor cost for the week? c) Write down the journal entries to pass these labor costs in a and b) to production in their respective accounts
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