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    sagnik2422's Avatar
    sagnik2422 Posts: 77, Reputation: 1
    Junior Member
    		  
    #1

    Sep 22, 2014, 05:30 PM
    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
    paraclete's Avatar
    paraclete Posts: 2,706, Reputation: 173
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    #2

    Sep 24, 2014, 12:42 AM
    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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