Total cost of wages Regular duties involving cutting out General shop cleanup duties ldie time due to power outage out knife handles Calculate the total cost of the employee's wages during the Determine the portion of this cost to be classified in each of the following categories: Required: 1. 2. a. Direct labor b. Manufacturing overhead (idle time) c Manufacturing overhead (overtime premium) d. Manufacturing overhead (indirect labor) Cape Cod Shirt Shop manufactures T-shirts and decorates them with custom designs for retail the premises. the following classifications best describe the cost. More than one classification may apply to t cost item Problem 2-45 t Classifications 2-5, 2-8, 2-9) Several costs incurred by the company are listed below. For each cost, indicate Cost Classifications a. Variable b. Fixed c. Period d. Product e. Administrative f. Selling &. Manufacturing h. Research and development i. Direct material j. Direct labor k. Manufacturing overhead Cost Items 1. Cost of fabric used in T-shirts. 2. Wages of shirtmakers. Basic Cost Management Concepts Chapter 2 3. Cost of new sign in front of retail T-shirt shop. 4. Wages of the employee who repairs the firm's sewing machines 5. Cost of electricity used in the sewing department 6. Wages of T-shirt designers and painters 7. Wages of sales personnel. 8. Depreciation on sewing machines. 9. Rent on the building. Part of the building's first floor is used to make and paint T-shirts. Part of it is used for the retail sales shop. The second floor is used for administrative offices and storage of raw material and finished goods. 10. Cost of daily advertisements in local media. 60a 11. Wages of designers who experiment with new fabrics, paints, and T-shirt designs. 12. Cost of hiring a pilot to fly along the beach pulling a banner advertising the shop. 13. Salary of the owner's secretary 14. Cost of repairing the gas furnace. 15. Cost of insurance for the production employees. mens hase t wo Heartland Airways operates commuter flights in three Midwestern states. Due to a political convention 4held 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. me 38 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 S$12 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. Required
