FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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PR 2-46 (Algo) Overtime Premiums and Fringe Benefit
Costs; Airline (LO 2-1, 2-3, 2-5, 2-9, 2-10)
[The following information applies to the questions displayed below.]
Heartland Airways operates commuter flights in three states. Due to a
political convention held in Topeka, the airline added several extra
flights during a two-week period. Additional cabin crews were hired
on a temporary basis. However, rather than hiring additional flight
attendants, the airline used its current attendants on overtime.
Ushanti Gaines worked the following schedule on August 10. All of
Gaines's flights on that day were extra flights that the airline would
not normally fly.
Regular time: 2 round-trip flights between Topeka and St. Louis (8
Overtime:
1 one-way flight from Topeka to Kansas City (4 hours)
Gaines earns $12 per hour and is paid time and a half when working
overtime. Fringe benefits cost the airline $4 per hour for any hour
worked, regardless of whether it is a regular or overtime hour.
PR 2-46 (Algo) Part 1: Compute the direct cost of compensating
Gaines for her services...
Required:
1. Compute the direct cost of compensating Gaines for her services on the flight from
Topeka to Kansas City.
Direct cost
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Transcribed Image Text:Required information PR 2-46 (Algo) Overtime Premiums and Fringe Benefit Costs; Airline (LO 2-1, 2-3, 2-5, 2-9, 2-10) [The following information applies to the questions displayed below.] Heartland Airways operates commuter flights in three states. Due to a political convention held in Topeka, the airline added several extra flights during a two-week period. Additional cabin crews were hired on a temporary basis. However, rather than hiring additional flight attendants, the airline used its current attendants on overtime. Ushanti Gaines worked the following schedule on August 10. All of Gaines's flights on that day were extra flights that the airline would not normally fly. Regular time: 2 round-trip flights between Topeka and St. Louis (8 Overtime: 1 one-way flight from Topeka to Kansas City (4 hours) Gaines earns $12 per hour and is paid time and a half when working overtime. Fringe benefits cost the airline $4 per hour for any hour worked, regardless of whether it is a regular or overtime hour. PR 2-46 (Algo) Part 1: Compute the direct cost of compensating Gaines for her services... Required: 1. Compute the direct cost of compensating Gaines for her services on the flight from Topeka to Kansas City. Direct cost
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