17. Helena Montana is employed by northern Laboratories and is directly involved in preparing the...

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Accounting

17. Helena Montana is employed by northern Laboratories and is directly involved in preparing the companys leading antibiotic drug. Helenas 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 Helenas fringe benefits. In the second week of February, Helena worked 47 hours of which 3 hours were idle time due to the breakdown of lab equipment. For fringe benefits associated with direct labor hours, Northern Laboratories treats 80% costs as direct labor cost. The remaining 20% along with the total fringe benefit costs associated with labor hours not considered direct is treated as manufacturing overhead. Calculate how much of Helena Montanas compensation will be classified as overhead cost for the second week of February.

A. $ 118.00 B. $ 129.00 C. $ 172.00 D. $ 261.00 E. $ 301.00

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