Francis Kenney Is Paid $26 an Hour for Straight-Time and $31

question 59

Multiple Choice

Francis Kenney is paid $26 an hour for straight-time and $31 an hour for overtime. One week she worked 46 hours, which included 6 hours of overtime. What is the overtime premium incurred to the company?

• A) $186
• B) $72
• C) $31
• D) $432

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Definitions:

Direct Labor Hours

The total number of hours worked by employees who are directly involved in the production process of goods or services.

Decentralized Operations

A business structure where decision-making is distributed among various levels or locations rather than concentrated at a single point.

Responsibility Accounting

A system of accounting that collects, summarizes, and reports financial information relating to the responsibilities of individual managers.

Controllable Costs

Costs that a manager or company has the power to influence or change directly.