roll calculation and distribution; overtime and idle time

A rush order was accepted by San Diego Machine Conversions

for five van conversions. The labor time records for the week

ended January 27 show the following:

Labor Time

RecordsHour Distribution

Employees Hours

Van

#1

Van

#2

Van

#3

Van

#4

Van

#5

Peavy (Supervisor) 42

Bell . . . . . . . . . . . . . . . . 45 10 10 10 10 5

Gonzalez . . . . . . . . . . . 48 24 24

Hairston . . . . . . . . . . . 48 24 24

Headley . . . . . . . . . . . . 45 15 15 15

Rodriguez . . . . . . . . . . 42 24 8

Young . . . . . . . . . . . . . 40 20 10

All employees are paid $10.00 per hour, except Peavy, who

receives $20 per hour. All overtime premium pay, except Pea-

vy's, is chargeable to the job, and all employees, including

Peavy, receive time-and-a-half for overtime hours.

Required:

1. Calculate the total payroll and total net earnings for the week.

Assume that an 18% deduction for federal income tax is

required in addition to FICA deductions. Assume that none of

the employees has achieved the maximums for FICA and

unemployment taxes. Hours not worked on vans are idle time

and are not charged to the job.

2. Prepare the journal entries to record and pay the payroll.

3. Prepare the journal entry to distribute the payroll to the

appropriate accounts.

4. Determine the dollar amount of labor that is chargeable to

each van, assuming that the overtime costs are proportionate

to the regular hours used on the vans. (First compute an

average labor rate for each worker, including overtime pre-

mium, and then use that rate to charge all workers, hours

to vans.)