AC 330

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Woodlands Restaurant Supply operates in two shifts, paying a late-shift premium of 10% and an overtime premium of 75%.

Total Wages for 6000 hours...$54000

Normal hourly employee wage... $9

Total regular hours worked, split evenly between the shifts... 5000

All overtime was worked by the early shift during May. Shift and overtime premiums are considered part of overhead rather than direct labor.

a. How many overtime hours were worked in May?

b. How much of the total labor cost should be charged to direct labor? To overhead?

c. What amount of overhead was for second-shift premiums? For overtime premiums?

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