Brooke Foster Is Employed by Wong Laboratories,Inc

question 10

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 labor and how much would be allocated to manufacturing overhead.

b.Assume that Wong Laboratories treats the part of fringe benefits related to direct labor as a component of direct labor 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 labor and how much would be allocated to manufacturing overhead.

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Definitions:

Operations Costing

A hybrid costing system used in manufacturing, combining features of both job-order and process costing to assign costs to products.

Job Order Cost

A costing method used to accumulate and assign the costs of labor, materials, and overhead to individual products or jobs.

Rework Costs

Expenses incurred to correct defective products or work processes, ensuring they meet quality standards before reaching the customer.

Just-In-Time

An inventory management strategy where materials and goods are produced or acquired only as needed in the production process, aiming to reduce waste.