Bob Is a Quality Inspector on the Assembly Line of a Manufacturing

question 13

Multiple Choice

Bob is a quality inspector on the assembly line of a manufacturing company.He is paid $16 per hour for regular time and time and a half for all work in excess of 40 hours per week.He is classified as a direct labor worker.
-Bob works 48 hours in a given week but is idle for 4 hours during the week due to equipment breakdowns.The allocation of Bob's wages for the week between direct labor cost and manufacturing overhead cost would be:

• A)Choice A
• B)Choice B
• C)Choice C
• D)Choice D

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Definitions:

Work in Process Inventory

Goods that are in various stages of completion in the production process but are not yet finished products.

Direct Method

An approach to costing that identifies the variable costs directly attributable to specific cost objects, like products or services.

Service Department Costs

Costs associated with the departments that do not directly produce goods but provide essential support services to production departments.

First-In, First-Out Method

An accounting method for valuing inventory where the oldest items are sold or used first.