Andy worked 57 hours last week for bread works manufacturing. of the 57 hours 8 hours were considered overtime, and also tony was idle for 10 of the 57 hours due to an equipment malfunction. andy makes $ 90 per hour and is paid $ 135 an hour (time and a half) for overtime. andy's total compensation for that week would be and assuming bread works charges overtime premium and idle time to indirect labor, the amount of this compensation credited to indirect labor would be a. $ 5 comma 490; $ 1 comma 260 b. $ 4 comma 590; $ 2 comma 430 c. $ 5 comma 895; $ 1 comma 980 d. $ 5 comma 130; $ 1 comma 620

A. $ 5 comma 490; $ 1 comma 260

Explanation:

The computation of the compensation and the indirect labor is shown below:

Compensation = (Normal hours × wage rate per hour) + (overtime hours × overtime wage rate per hour)

= (49 hours × $90) + (8 hours × $135)

= $4,410 + $1,080

= $5,490

Since total hours is 57 hours out of which 9 hours are considered as overtime, so the remaining hours i.e 49 hours will be considered normal hours

Indirect labor = (Idle hours × wage rate per hour) + (overtime hours ×  wage rate per hour)

= (10 hours × $90) + (8 hours × $45)

= $900 + $360

= $1,260

The $45 rate is computed by

= Overtime rate per hour - normal wage rate per hour

= $135 - $90

= $45

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