B. Calculate the Direct Labor cost per meat pizza. *For the meat pizzas, the number of employees is 50 and the pizzas per hour is 200, same for rate, fringe and total. (direct labor cost)

FINANCIAL ACCOUNTING
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ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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Assembly line workers (direct labor) are paid an hourly basis according to hours worked. If they work more than 8 hours a day, then they are entitled to an overtime premium of 50% of the basic hourly rate of $7.50 per hour. Supervisors and other indirect labor employees are salaried.
(remember the yellow cells already contain formulas)

• Assembly line workers (direct labor) $7.50 per hour (plus $2.50 per hour in fringe benefits)
• Supervisor (including fringe benefits) $3,000
• Other Indirect labor (including fringe benefits) $2,000


B. Calculate the Direct Labor cost per meat pizza.
*For the meat pizzas, the number of employees is 50 and the pizzas per hour is 200, same for
rate, fringe and total. (direct labor cost)

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