Labor Exercises

1. Jose Santos worked 46 hours in one week at a rate of P45 an hour, He is paid one and a half times the regular rate for hours worked in excess of 40. What is the gross earnings of Jose Santos: 2. The data below pertains to the earnings of Pedro Castro for the week ended June 16, 2018: Hours and rate 42 hours worked at P40 an hour Earnings to date P14.00 Overtime rate One and a half times the regular rate for hours worked in excess of 40 hours. Withholding tax 3% of gross earnings SSS contributions 2% of gross earnings Phil. Health contributions 1% of gross earnings Pag-ibig contributions 1% of gross earnings What is the net pay for Pedro Castro for the week? 3. Mike G, a production employee is paid P180 per hour for a regular work of hours. During the week ended March 23, Mike G worked 50 hours and earned time and a half for overtime hours. What is the amount that should be charged to Work in Process account if the overtime premium is charged to production worked on during the overtime hours? 4. Using the data in No. 3, what is the amount that should be charged to Work in Process account, if the overtime premium is charged. To manufacturing overhead? 5. 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. What is the amount to be charged to Manufacturing Overhead Control 6. Using the data in No. 5, what is the estimated liability for bonus? 7. Using the data in No. 5, what is the estimated liability for vacation pay? 8. The pay stub of Jing Guerrero, employee No. 106 who works on the production line, showed the following for a 2-week pay period: Gross earnings P4,560 Income tax withheld 611.68 SSS premiums withheld 342.00 Phil. Health premiums withheld 112.16 Pag-ibig premiums withheld 222.00 Union dues 44.00 Jing Guerrero works a regular 40-hours week and is paid P48 per hour regular time, and time and a half for overtime. She is also paid an additional P1,092.80 in benefits for the 2 week pay period with regard to the employer's contribution to the company's SSS and Phil. Health premiums. What is the amount to be charged to Work in Process for employee No. 106 for the 2-week period, assuming that any overtime work is not traceable to a particular job order? 9. Using the information in No. 8, how much is to be charged to manufacturing overhead Control account for the 2week period for employee No. 106? 10. Ms. Jacky, a production worker earns P14,904 a month, and the company pays one month's salary as bonus at the end of the year. Ms. Jacky is also entitled to a half month paid vacation. The company also pays P2,070 a year into a pension fund of the worker. All labor related fringe benefits of production workers are treated as manufacturing overhead. Bonus, vacation pay, and pension costs are charged to production during the 11 and a half months the employee is at work. What is the total liability for bonus, vacation and pension? 11. Ms. Joy, a punch press operator in a metal fabricating plant is randomly assigned to various jobs. The straight-time wage rate is P40 per hour with time and one-half for time over 40 hours per week. How much of these earnings should be charged to Manufacturing Overhead Control account if 47 hours are worked in one week?