Chapter S 182 MULTIPLE CHOICES-THEORETICAL 1. To check the accuracy of hours worked, one would ordinarily compare time cards with: a. employee earnings records b. personnel records c. job time tickets d. payroll journal 2. The document that is used to secure information as to the type of work performed is the: a. labor voucher b. time ticket c. clock card d. requisition report 3. An example of fringe benefit is: a. the employee health insurance. b. the direct labor wage rate. c. withheld taxes. d. overtime pay. 4. An example of labor-related costs is: a. bonus pay b. factory labor c. fringe benefits d. operating expense 5. Wages in excess of the regular rate paid for work after normal closing time is: a. Overtime premium b. Pension pay c. Regular wage d. Vacation and holiday payLabor Accounting - Control and Costing 183 If the job is taken as a rush order with the knowledge that ovetime will be necessary, the overtime premium should be charged to: a. Specific job b. General expense c. Factory overhead d. Selling expense . If the overtime premium is charge to specific job, it should be debited to: a. Work in process account b. Selling expense account c. General expense account d. Manufacturing overhead account 8. What is the procedure for keeping records of the hours worked by each employee? a. timekeeping b. bookkeeping c. accounting d. record keeping 9. What is the certificate that is given to employee at the end of the year to aid him in the filing of his annual income tax return? a. Certificate of income tax withheld. b. Certificate of salaries paid. c. Certificate of employment. d. Certificate of compensation payment - tax withheld. 10. The overtime premium spent on a regular job order that cannot be completed in the regular working hours should be charged to: a. Manufacturing overhead control account b. Work-in process account C . Selling expense account d. General expense account184 MULTIPLE CHOICES-COMPUTATIONAL 1. Jose Santos worked 46 hours in one week at a rate of P45 an hour. H. is paid one and a half times the regular rate for hours worked is excess of 40. What is the gross earnings of Jose Santos: a. P2,205 b. P2,070 c. P2,340 d. P1,800 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? a. P 1,599.60 b. P13,879.60 C. P 1,629.60 d. P13,580.00Labor Accounting - Control and Costing 185 Mike G, a production employee is paid P180 per hour for a regular work of 40 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? a. P9,000 b. P9,900 c. P8,900 d. P9,500 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? a. P9,000 b. P9,900 c. P8,900 d. P9,500 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 account? a. P 1,344 b. P 2,016 c. P20,000 d. P 6,720186 ". Using the data in No. 5. what is the estimated liability for bonus P - 0 - b. P 1,344 C. P 6,720 d. P20,160 7. Using the data in No. 5. what is the estimated liability for vacation pay? a. P - 0 - b. P20, 160 c. P 1,344 d. P 672 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 P4,560.00 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 employed No. 106 for the 2-week period, assuming that any overtime work not traceable to a particular job order? a. P6,480 b. P8,880 C. P3,840 d. P4,320Labor Accounting - Control and Costing 187 9. Using the information in No. 8, how much is to be charged to Manufacturing Overhead Control account for the 2-week period for employee No. 106? a. P1,092.80 b. P4,320.00 c. P4,560.00 d. P1,332.80 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 1112 months the employee is at work. What is the total liability for bonus, vacation and pension? a. P2,484 b. P2, 124 c. P2,540 d. P1,206 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? a. P1,974 b. P 280 c. P 140 d. P-0