E3-13 Employees' earnings using hourly and piece-rate methods The payroll records of Grove Machining Co. show the following information for the week ended April 17: Income Hours Production Employee Classification Worked (Units) Rate Tax W/held Manressa, C. Direct 42 $18.00/hr $ 80 Dorr, M. Direct 48 $17.60/hr 84 Ginty, D. Direct 39 2,000 $.44/piece 110 Norris, D. Direct 40 1,800 $.44/piece 100 Rancifer, K. Indirect 40 $800/wk 100 Greer, B. Indirect 50 $1,600/wk 240 Holbert, R. Indirect 40 $1,400/wk 120 Hourly workers are paid time-and-a-half for overtime. a. Determine the net earnings of each employee. b. Prepare the journal entries for the following: 1. Recording the payroll. 2. Paying the payroll. 3. Distributing the payroll. (Assume that the overtime premium will be distributed to all jobs worked on during the period.) 4. Recording the employer's payroll taxes. (Assume that none of the employees has achieved the maximum wage bases for FICA and unemployment taxes.) Hours Worked/Pcs A. Employees Finished (A) B. Hourly Rate/Piece Regular Rate (B) Pay (C) Assume that deductions for SSS - 3%; Philhealth - 2% and Pag-Ibig - 1% C. Overtime Total Premium Gross Pay Withholding SSS (3%) (D) (E) Tax (F) (G) Total Philhealth (2%) Pagibig (1%) (H) (1) Deductions (J) Net Pay for the week (E-J) Prepare the journal entries under the following assumptions: (1) overtime work is due to random scheduling of overtime and (2) overtime is due to exacting specifications of customers.