[aghaonweed]

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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