The following information is available for the employees of Rockwell Company for the first week of January 2011:

1. John earns \(\$ 26\) per hour and \(11 / 2\) times his regular rate for hours over 40 per week. John worked 46 hours the first week in January. John's federal income tax withholding is equal to 10 percent of his gross pay. Rockwell pays medical insurance of \(\$ 75\) per week for John and contributes \(\$ 50\) per week to a retirement plan for him.

2. Ken earns a weekly salary of \(\$ 1,200\). Ken's federal income tax withholding is 15 percent of his gross pay. Rockwell pays medical insurance of \(\$ 120\) per week for Ken and contributes \(\$ 100\) per week to a retirement plan for him.

3. Vacation pay is accrued at the rate of \(1 / 4\) of the regular pay rate per hour for John and \(\$ 75\) per week for Ken.

Assume the Social Security tax rate is 6 percent on the first \(\$ 110,000\) of salaries and the Medicare tax rate is 1.5 percent of total salaries. The state unemployment tax rate is 4.2 percent and the federal unemployment tax rate is .8 percent of the first \(\$ 7,000\) of salary for each employee.

Required

a. Compute the gross pay for John for the first week in January.

b. Compute the net pay for both John and Ken for the first week in January.

c. Prepare the journal entry to record the payment of the payroll for the week.

d. Prepare the journal entry to record the payroll tax expense and fringe benefit expense for Rockwell for the week.

e. What is the total cost of compensation expense for the first week of January 2011 for Rockwell Company?