E3-1 Computing payroll earnings R. Herbert of Crestview Manufacturing Co. is paid at the rate of $20 an hour for an eight-hour day, with time-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 a week, the labor time record shows the following: Job or Indirect Labor Su. M Tu. W Th. F Sa. Total 007 5 3 5.0 6 24.0 009 3 3 5 6.5 5 22.5 Machine repair 4 6.5 10.5 Total 4 8 8 8 11.5 11 6.5 57.0 E3-2 Because jobs are randomly scheduled for the overtime period, any overtime premium is charged to Factory Overhead. a. Compute Herbert's total earnings for the week. b. Present the journal entry to distribute Herbert's total earnings. (Note: These single journal entries here and in E3-2, E3-3, E3-4, E3-8 and E3-9 are for the purpose of illustrating the principle involved. Normally, the entries would be made for the total factory payroll plus the administrative and sales payroll.) Recording payroll Using the earnings data developed in E3-1 and assuming that this was the first week of employment for R. Herbert with Crestview Manufacturing Co., prepare the journal entries for the following:. a. The week's payroll. b. Payment of the payroll. E3-3 Modified wage plan Randy Wetzel earns $25 per hour for up to 400 units of produc- tion per day. If he produces more than 400 units per day, he I will receive an additional piece rate of $.50 per unit. Assume that his hours worked and pieces finished for the week just ended were as follows: Day Hours Worked Pieces Finished Monday Tuesday Wednesday Thursday Friday 8 8 8 8 8 400 380 440 450 360 a. Determine Wetzel's earnings for each day and for the week. b. Prepare the journal entry to distribute the payroll, assuming that any make-up guarantees are charged to Factory Overhead.