Barton Company has employees engaged in manufacturing, marketing, and administrative functions. The February payroll was:
Direct labor .......................................... $25,000
Indirect labor ........................................ 10,000
Marketing ............................................ 8,000
Administrative ........................................ 7,000
$50,000
The company incurs the following labor-related expenses, expressed as a percentage of payroll:
Pension plan ........................................................... 7.8%
Other postretirement benefits ....................................... 2.3
FICA tax ................................................................ 7.5
Federal unemployment insurance .................................... .8
State unemployment insurance ....................................... 4.6
Worker's compensation ................................................ 1.0
Medical insurance ...................................................... 4.0
Required:
Prepare the journal entry to record the employer's labor-related expenses.