Question

Ahmed Yasin is paid $30 an hour for normal-time and $40 an hour for overtime. One week he worked 39 hours, which included 9 hours of overtime, and 4 hours of idle time caused by material shortages. What is the direct labor cost incurred to the company in that week?

Answer 1

Answer: Ahmed Yasin worked a total of 39 hours in the week, including 9 hours of overtime, which means he worked 30 regular hours and 9 overtime hours.

Explanation: The direct labor cost incurred to the company in that week is the sum of the cost of normal-time and overtime labor minus the cost of idle time.The cost of normal-time labor is:30 dollars per hour x 30 regular hours = 900 dollarsThe cost of overtime labor is:40 dollars per hour x 9 overtime hours = 360 dollarsThe cost of idle time is:30 dollars per hour x 4 idle hours = 120 dollarsTherefore, the direct labor cost incurred to the company in that week is:900 dollars (normal-time labor) + 360 dollars (overtime labor) - 120 dollars (idle time) = 1140 dollars.So, Ahmed Yasin's direct labor cost incurred to the company in that week is 1140 dollars.