EXERCISE 3B–2 Allocations of Overtime Pay [LO9]
Barry DeJay operates a stamping machine on the assembly line of Clinton Manufacturing Com- pany. Last week Mr. DeJay worked 46 hours. His basic wage rate is $16 per hour, with time and a half for overtime (time worked in excess of 40 hours per week).
Allocate Mr. DeJay’s earnings for the week between direct labor and manufacturing overhead.