A computer operator at a blog hosting company earns $16.00 per hour. By contract, the employee earns $24.00 (time and a half) for overtime hours. The operator worked 44 hours during the first week of May, and overtime is paid after the usual 40 hours. EX 2-26 (Algo) Part 3: How much of the employee's total compensation for the week is direct - labor cost? 3. How much of the employee's total compensation for the week is direct - labor cost? How much is overhead? Note: Do not round intermediate calculations. Round your final answers to 2 decimal places.

A computer operator at a blog hosting company earns $16.00 per hour. By contract, the employee earns $24.00 (time and a half) for overtime hours. The operator worked 44 hours during the first week of May, and overtime is paid after the usual 40 hours. EX 2-26 (Algo) Part 3: How much of the employee's total compensation for the week is direct - labor cost? 3. How much of the employee's total compensation for the week is direct - labor cost? How much is overhead? Note: Do not round intermediate calculations. Round your final answers to 2 decimal places.

Principles of Cost Accounting

17th Edition

ISBN:9781305087408

Author:Edward J. Vanderbeck, Maria R. Mitchell

Publisher:Edward J. Vanderbeck, Maria R. Mitchell

Chapter3: Accounting For Labor

Section: Chapter Questions

Problem 1E: R. Herbert of Crestview Manufacturing Co. is paid at the rate of 20 an hour for an eight-hour day,...

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R. Herbert of Crestview Manufacturing Co. is paid at the rate of 20 an hour for an eight-hour day, with time-and-a-half for overtime and double-time for Sundays and holidays. Regular employment is on the basis of 40 hours a week, five days a week. At the end of a week, the labor time record shows the following: Because jobs are randomly scheduled for the overtime period, any overtime premium is charged to Factory Overhead. a. Compute Herberts total earnings for the week. b. Present the journal entry to distribute Herberts total earnings. (Note: These single journal entries here and in E3-2, E3-3, E3-4, E3-8 and E3-9 are for the purpose of illustrating the principle involved. Normally, the entries would be made for the total factory payroll plus the administrative and sales payroll.)
Huron Manufacturing Co. uses a job order cost system to cost its products. It recently signed a new contract with the union that calls for time-and-a-half for all work over 40 hours a week and double-time for Saturday and Sunday. Also, a bonus of 1% of the employees earnings for the year is to be paid to the employees at the end of the fiscal year. The controller, the plant manager, and the sales manager disagree as to how the overtime pay and the bonus should be allocated. An examination of the first months payroll under the new union contract provisions shows the following: Analysis of the supporting payroll documents revealed the following: a. More production was scheduled each day than could be handled in a regular workday, resulting in the need for overtime. b. The Saturday and Sunday hours resulted from rush orders with special contract arrangements with the customers. The controller believes that the overtime premiums and the bonus should be charged to factory overhead and spread over all production of the accounting period, regardless of when the jobs were completed. The plant manager favors charging the overtime premiums directly to the jobs worked on during overtime hours and the bonus to administrative expense. The sales manager states that the overtime premiums and bonus are not factory costs chargeable to regular production but are costs created from administrative policies and, therefore, should be charged only to administrative expense. Required: 1. Evaluate each positionthe controllers, the plant managers, and the sales managers. If you disagree with all of the positions taken, present your view of the appropriate allocation. 2. Prepare the journal entries to illustrate the position you support, including the accrual for the bonus.
A loom operator in a textiles factory earns $16 per hour. By contract, the employee earns $24 (time and a half) for overtime hours. The operator worked 45 hours during the first week of May, and overtime is paid after the usual 40 hours.Required:1. Compute the loom operator’s compensation for the week.2. Calculate the employee’s total overtime premium for the week.3. How much of the employee’s total compensation for the week is direct-labor cost? How much is overhead?
Max's Enterprise operates using the Rowan Bonus Scheme. From its production work during the week ending April 24th, an employee whose basic hourly rate of pay is $14 was assigned the following job which the employee completed. Time taken Job# Time allowed 10 7 hours 45 minutes 6 hours 15 minutes What is the employee's basic pay if the Rowan Bonus Scheme was used? Select one: O A. $75 O B. $84 O C. $87.50 OD. $62.50
5 Employee A is paid a basic rate of pay of RM3.50 per hour. Overtime is calculated at time and a quarter. During one week he does the following jobs: • Job 111 -he takes 20 hours Job 112- he takes 30 hours Required: a. Calculate Employee A's earnings. b. Determine the direct labour costs to be charged to each job. Determine the overheads related to each job. C.
Mr. Koala, a factory worker is paid $150 per hour for a regular work of 40 hours. During the week, Mr. Koala worked 45 hours and earned time and a half for overtime hours. Required: Prepare Journal Entries A. If overtime premium is charged to the jobs worked during the overtime hours. B. If the overtime premium is not charged to specific jobs.
Mr. Koala, a factory worker is paid $150 per hour for a regular work of 40 hours. During the week, Mr. Koala worked 45 hours and earned time and a half for overtime hours. a. If overtime premium is charged to the jobs worked during the overtime hours, how much is the amount charged to Work in Process account? b. If the overtime premium is not charged to specific jobs, How much is the amount charged to Factory overhead?
4. Sam Tully works two separate jobs for Mountain Company. During the week, Job A consisted of 38 hours at $20 per hour; Job B involved 15 hours at $14 per hour.What is Sam’s total earnings for this workweek if Mountain Company uses the average rate basis for calculating overtime?
A foundry employee worked a normal 40-hour shift, but four hours were idle due to a small fire in the plant. The employee earns $18 per hour.Required:1. Calculate the employee’s total compensation for the week.2. How much of this compensation is a direct-labor cost? How much is overhead?
Question text Gina Flores, a full time student at TSTC is employed by The Boot Jack as a salesperson. Her hourly rate is $5.25. For one week, Ms. Flores worked 33 1/4 hours. Ms. Flores' earning for the week are: Is the hourly rate in violation of the FSLA? Explain why/why not. If the hourly rate is in violation of the FLSA, the amount The Boot Jack should pay Ms. Flores is:
6. Compute gross wages due to each employee under federal wage-hour law: а. Nona is a salaried employee and is paid $900 for a 32-hour workweek. One week, she works 40 hours. b. Sal is normally paid $600 for a 40-hour workweek. One week, he works 45 hours.
Jon Stone is paid $20 an hour for an 8-hour day, with time-and-a-half for overtime and double-time for Sundays and holidays. Regular employment is on the basis of 40 hours a week, 5 days a week. Overtime premium is charged to Factory Overhead. Required: Using the labor-time record below: a. Compute Jerrod's total earnings for the week. b. Present the journal entry to distribute Jerrod's total earnings. Sunday Monday Tuesday Wednesday Thursday Friday Saturday ТОTAL Job F2 3 5 4 31 Job M1 1 3 6 14 Admin 1 3 6 TOTAL 8. 8. 8 10 51