A Direct Labor Worker at Langill Corporation Is Paid $16

question 7

Essay

A direct labor worker at Langill Corporation is paid $16 per hour for regular time and time and a half for all work in excess of 40 hours per week. This employee works 49 hours in a given week but is idle for 4 hours during the week due to equipment breakdowns.
Required:
Determine how much of the worker's wages for the week would be classified as direct labor cost and how much would be classified as manufacturing overhead cost. Show your work.

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Definitions:

U.S. Income Tax

A tax imposed by the U.S. government on the income generated by businesses and individuals within its jurisdiction.

FICA Tax

A federal payroll tax in the United States that funds Social Security and Medicare programs.

Progressive

A term that may refer to a system or policy where the rate increases as the taxable amount increases, often used in the context of taxation or a general approach promoting change or innovation.

State Government Revenue

The income received by state governments, which can come from taxes, fees, and other sources.