Question 1
In determining product cost, what concerns does a manufacturing firm have when contracting with a government agency?
Question 2
In the manufacturing plant, Alex is paid $40 an hour for straight-time and $60 an hour for overtime. One week she worked 54 hours, which included 8 hours of overtime, and 6 hours of idle time caused by material shortages.
Required:
a. | What is Alex's total compensation for the week? |
b. | What amount of compensation would be reported as direct manufacturing labor? |
c. | What amount of compensation would be reported as manufacturing overhead? |