Assessment 1 Part 3: Computing Payroll Earnings
Scenario:
G. Smith of Central Manufacturing Company is paid at the rate of $30 an hour for an eight hour day, with time and and a half for overtime and double time for Sundays and holidays. Regular employment is on the basis of 40 hours a week, five days a week. At the end of the week, the labor time record shows the following:
Job or Indirect Labor	Su	M	Tu	W	Th	F	Sa	Total
007		6	3	2	7	7		25
009		2	5	6	3	6		22
Machine Repair	5						8	13
Total	5	8	8	8	10	13	8	60
Using the data above and the ledger below, compute Smith's total earnings for the week and a prepare the journal entry to distribute Smith's total earnings.
	Hours			x	Rate			=	Total		Account Debited
											Factory Overhead
											Expense
	Regular	Time and	Double		Regular	Time and	Double		Gross	Work In	Overtime	M & R
		a half	Time			a half	Time		Earnings	Process	Premium
Sunday indirect			5
Monday direct	8
Tuesday direct	8
Wednesday direct	8
Thursday direct	8	2
Friday direct	8	5
Saturday indirect		8
Totals	40	15	5