(Appendix) Employer’s Labor-Related Expenses. Clarks Company has employees engaged in manufactur¬ ing, marketing, and administrative functions. The February payroll was: LO3 Directlabor. $25,000 Indirectlabor. 10,000 Marketing. 8,000 Administrative. 7,000

$50,000 The company incurs the following labor-related expenses as a percentage of the payroll:

Pensionplan. 7.8%

Other postretirementbenefits. 2.3 FICAtax. 7.5 Federal unemploymentinsurance. .8 State unemploymentinsurance. 4.6 Worker’scompensation. 1.0 Medicalinsurance. 4.0 Required: Prepare the journal entry to record the employer’s labor-related expenses.

CGA-Canada (adapted). Reprint with permission.