Becky Works on the Assembly Line of a Manufacturing Company

question 1

Multiple Choice

Becky works on the assembly line of a manufacturing company where she installs a component part for one of the company's products. She is paid $16 per hour for regular time and time and a half for all work in excess of 40 hours per week.
-Becky's employer offers fringe benefits that cost the company $3 for each hour of employee time (both regular and overtime) . During a given week, Becky works 42 hours but is idle for 3 hours due to material shortages. The company treats all fringe benefits relating to direct labor as added direct labor cost and the remainder as part of manufacturing overhead. The allocation of Becky's wages and fringe benefits for the week between direct labor cost and manufacturing overhead would be:

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

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