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Sun Ray Panels, manufactures solar panels. Employees in the production department are paid $28/ hour for the first 37.5 hours they work & then $56/hour
Sun Ray Panels, manufactures solar panels. Employees in the production department are paid $28/ hour for the first 37.5 hours they work & then $56/hour for any hours worked over 37.5. a) In one week an employee worked 55 hours, determine the total labour cost? How much of the wage is allocated to direct labour vs manufacturing overhead? (3 marks) b) In a difference week and employee worked 44 hours, however the employee was idle for 4 hours due to a production machine being broken, calculate the total weekly wage? How much of the wage is allocated to direct labour vs manufacturing overhead? (3 marks) c) Sun Ray has implemented a benefit package that will cost $4/hour for each employee. Assuming in a week the employee works 50 hours, of which 3 were idle due to a scheduling error, what is the total wage cost including benefits. If the company allocates the benefit cost to manufacturing overhead, what is the direct labour & manufacturing overhead cost? (3 marks) d) Using the same information above, suppose the benefits are allocated as a direct labour, what is the direct labour vs manufacturing overhead cost
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