1 (Note 1: When computing the expected value of factory hourly payroll, you must take into consideration both the 3% wage increase and the 5% incre 10/31/2018 audited sales balance to determine the expected value for sales commissions on 10/31/2019.) Requirement a. (2) Requirement b. [(2)-(1))/(2) (1) Preliminary Balance Expected Value 10/31/2019 10/31/2019 Difference as a Percentage Executive salaries 618,432 507,595 Factory hourly payroll (see Note 1) 12,019,400 557071 (21.84) % 0% Office salaries Factory supervisors' salaries Sales commissions (see Note 2) 829,583 2,894 585 3,269,979 % % consideration both the 3% wage increase and the 5% increase in the number of units produced and sold. Note 2. Use the increase in the 10/31/2015 preliminary sales balance be s on 10/31/2019.) equirement b. (2)-(1))/(2) Bifference as a Percentage (21.84) % 0% 196 % hourly p Dected va R Data table ry E 19 432 400 Sales Executive salaries Factory hourly payroll 583 Factory supervisors' salaries 585 Office salaries .979 Sales commissions. Audited Preliminary Balance Balance 10/31/2018 $ 59,401,400 $ 10/31/2019 66,529,568 492,811 618,432 9,284,511 12,019,400 770,600 829,583 1,867,433 2,894,585 2,496,977 3,269,979 "Sales have increased 12% over prior year. 7% percent of that is due to an increase in the average selling price. The remaining 5% is attributed to an increase in the number of units sold Print Done Xof units produced and sole More info hourly p cted va R 432 400 583 585 979 You have obtained the following information to help you perform preliminary analytical procedures for the payroll account balances. 1. There has been a significant increase in the demand for Cast Iron's products. The increase in sales was due to both an increase in the average selling price of 7 percent and an increase in units sold that resulted from the increased demand and an increased marketing effort. 2. Even though sales volume increased, there was no addition of executives, factory supervisors, or office personnel. 3. All employees including executives, but excluding commission salespeople, received a 3 percent salary increase starting November 1, 2018. Commission salespeople receive their increased compensation through the increase in sales. 4. The increased number of factory hourly employees was accomplished by recalling employees that had been laid off. They receive the same wage rate as existing employees. Cast Iron does not permit overtime. 5. Commission salespeople receive a 9 percent commission on all sales on which a commission is given. Approximately 85 percent of sales earn sales commission. The other 15 percent are "call-ins," for which no commission is given. Commissions are paid in the month following the month they are earned. Print Done - X of units