Brooke Foster Is Employed by Wong Laboratories,Inc

question 1

Essay

Brooke Foster is employed by Wong Laboratories,Inc.,and is directly involved in preparing and packaging the company's leading sleep aid,RestWell.Brooke's basic wage rate is $15 per hour,and she is paid time-and-a-half for any work in excess of 40 hours per week.Additionally,Wong Laboratories provides a fringe benefit package that costs the company $5 for each hour of employee time (regular or overtime).During a recent week,Brooke worked 49 hours but was idle for 3 hours due to materials shortages.
Required:
(a.)Assume that Wong Laboratories treats all fringe benefits as part of manufacturing overhead.Compute Brooke's total wages and fringe benefits for the week and indicate how much of her wages and fringe benefits for the week would be allocated to direct labour and how much would be allocated to manufacturing overhead.
(b.)Assume that Wong Laboratories treats the part of fringe benefits related to direct labour as a component of direct labour cost.Compute Brooke's total wages and fringe benefits for the week and indicate how much of her wages and fringe benefits would be allocated to direct labour and how much would be allocated to manufacturing overhead.

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Definitions:

Profit-Maximizing Output

The point of maximum profitability for a company is reached when its marginal cost is equal to its marginal revenue, indicating the optimal production level.

Antimacassars

Protective coverings used on the backs and arms of furniture to prevent them from soiling or wear, typically made of fabric or lace.

Monopoly

A market structure characterized by a single seller who has exclusive control over the supply of a good or service, and where there are high barriers to entry for potential competitors.

Production Function

An equation that describes the maximum output of a good or service that can be produced from a set number of inputs, outlining the relationship between input usage and output levels.