During the month of September 20×3 the following labour hours
were worked. Direct production workers 2,300 basic hours plus 500
hours of overtime. Indirecr workers 640 hours including 120 hours
of overtime The direct workers are paid a basic rate of $7.20 per
hour and the indirect workers $6.20 per hour.Overtime hours are
paid at time and a half. The overtime premium for direct labour is
classed as an indirect cost. Of the hours paid to the direct
production workers 100 of these were idle tiome hours. Calculate
the direct labour cost for the month.
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