An employee earns $20 per hour for up to 200 units of production per day. An emp

Question

An employee earns $20 per hour for up to 200 units of production per day. An employee who produces more than 200 units per day receives an additional piece rate of S.50 per unit. Assume that an employee worked eight hours perday with the following unit production for the week: Monday, 200; Tuesday, 175; Wednesday, 225; Thursday, 250; and Friday, 150. 1. Calculate the employee's gross earnings for the week. The total wages and salaries earned by all employees of Dilbert Mfg. Co. during the month of April, as shown in the labor cost summary and the schedule of fixed administrative and sales salaries, are classified as follows 2. Direct labor Indirect labor. . $312,563 81,060 Sales salaries.... 86.250 a. Prepare a journal entry to distribute the wages earned during April. b. What is the total amount of payroll taxes that will be imposed on the employer, assuming that two administrative employees with combined earnings this period of $2,000 have exceeded $8,000 in earnings prior to the period?

Explanation / Answer

ANSWER # 1 Day units produced Woked for(hours) Hourly rate Wages for the day Monday 200 8 20 160.00 Tuesday 175 8 20 160.00 Wednesday 225 8 20 160.00 Additional $ 0.50 per unit 12.50 Thursday 250 8 20 160.00 Additional $ 0.50 per unit 25.00 Friday 150 8 20 160.00 TOTAL GROSS EARNINGS FOR THE WEEK 837.50 ANSWER # 2 DEBIT CREDIT Direct Labor exp 312563 Indirect Labor exp 81060 Salaries exp. 156350 Cash and bank 549820 Contribution to social security tax 124 Tax @ 6,2% on $ 2000 Medicare exp. 29 Tax @ 1.45% on $ 2000

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.