An Employee Whose Regular Hourly Rate Is $10 and Whose

question 16

Multiple Choice

An employee whose regular hourly rate is $10 and whose overtime rate is 1.5 times the regular rate worked 44 hours in one week.In the payroll register,the employer should record an overtime premium of

• A) $440.
• B) $220.
• C) $20.
• D) $5.

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Definitions:

Predetermined Overhead Rate

A rate calculated before a period begins, used to allocate estimated overhead costs to products or job orders based on a chosen activity base.

Direct Labour-hours

The total hours worked by employees directly involved in the manufacturing process.

Work in Process

Items that are in the process of being manufactured but are not yet complete.

Work in Process

Also known as work in progress, it denotes the cost of unfinished goods in manufacturing at any given time.