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-   -   Fringe Benefits Question Cost Accounting Really lost (https://www.askmehelpdesk.com/showthread.php?t=801771)

  • Sep 22, 2014, 05:30 PM
    sagnik2422
    Fringe Benefits Question Cost Accounting Really lost
    Emma Green is employed by Northern Laboratories and is directly involved in preparing the company’s leading antibiotic drug. Emma’s basic wage rate is $22 per hour. The company pays its employees time and a half (i.e. 150%) for any work in excess of 40 hours per week. In addition, the Lab contributes $10/hour towards Emma’s fringe benefits. In the second week of September, Emma worked 47 hours, of which 3 hours were idle time due to the breakdown of lab equipment.

    What is the total amount of wages and fringe benefits Emma worked earned in second week of September?

    I was never taught this but it will be on an exam, please help me with steps,

    All I can think is that fringe is indirect costs
  • Sep 24, 2014, 12:42 AM
    paraclete
    Yes Fringe benefits is an indirect overhead

    So
    40 * 22
    7* 22 * 1.5

    Fringe benefits are usually not paid on overtime

    40 * 10


    Idle time, assuming overtime hours are not idle time is an indirect cost and a dissection of wages paid

    3* 22

    I;m assuming your calculator works as well as mine

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