Problem 1: Four factory workers and a supervisor make a team in the Machining Department. The supervisor earns P100 per hour, and the combined hourly charge of the four workers is P320. Each employee is entitled to a 2-week paid vacation and a bonus equal to 4 week's wages each year. Vacation pay and bonuses are treated as indirect costs and are accrued over the 50 week work year. A provision in the union contract does not allow these employees to work in excess of 40 hours per week. 1. Using the data in Problem 1, what is the amount to be charged to Manufacturing Overhead Control account? 2. Using the data in Problem 1, what is the estimated liability for bonus? 3. Using the data in Problem 1, what is the estimated liability for vacation pay? (Solutions must be in good accounting form. Excel form is also great! Hoping that you can help me! Thanks a lot, Tutor!)
Problem 1: Four factory workers and a supervisor make a team in the Machining Department. The supervisor earns P100 per hour, and the combined hourly charge of the four workers is P320. Each employee is entitled to a 2-week paid vacation and a bonus equal to 4 week's wages each year. Vacation pay and bonuses are treated as indirect costs and are accrued over the 50 week work year. A provision in the union contract does not allow these employees to work in excess of 40 hours per week.
1. Using the data in Problem 1, what is the amount to be charged to Manufacturing
2. Using the data in Problem 1, what is the estimated liability for bonus?
3. Using the data in Problem 1, what is the estimated liability for vacation pay?
(Solutions must be in good accounting form. Excel form is also great! Hoping that you can help me! Thanks a lot, Tutor!)
Step by step
Solved in 4 steps with 6 images
