Dave Rigby Is Paid $30 an Hour for Straight-Time and $40

question 158

Multiple Choice

Dave Rigby is paid $30 an hour for straight-time and $40 an hour for overtime.One week he worked 45 hours,which included 5 hours of overtime,and 3 hours of idle time caused by material shortages.What is the direct labor cost incurred to the company?

• A) $1,260
• B) $1,400
• C) $1,310
• D) $1,210

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Definitions:

Demand Equation

A mathematical representation of the relationship between the quantity of a good consumers are willing and able to buy and the good's price.

Supply Equation

An economic formula that represents the relationship between the quantity of a good supplied by producers and the price of the good.

Price Floor

A minimum price set by the government for certain goods and services, intended to prevent prices from dropping too low.

Shortage/Surplus

A situation in the market where the amount of a product that consumers want to buy is greater than the amount available (resulting in a shortage), or the available amount is more than what consumers want to purchase (leading to a surplus).