During the First Week of April,Gillian Worked a Total of 50

question 22

Multiple Choice

During the first week of April,Gillian worked a total of 50 hours assembling products and had no idle time.Gillian is paid $15 per hour for regular time,and is paid time-and-a-half for all hours in excess of a 40-hour week.How much of Gillian's wages for the week should be charged to direct labour?

• A) $600.
• B) $225.
• C) $750.
• D) $975.

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Definitions:

Direct Materials

Substances that can be directly linked to the manufacturing of a particular item.

Direct Labor

Labor costs that can be easily traced to individual units of product; essentially the wages paid to workers who directly manufacture goods.

Manufacturing Overhead

All indirect manufacturing costs, including but not limited to utilities, rent, and salaries of supervisors.

Direct Materials Cost

The expense incurred for raw materials that are directly traceable to the production of specific goods or services.