Score: 0 of 15 pts 2 of 10 (8 complete) HW Score: 55%, 55 of 100 pts P7-35 (similar to) Question Help You are auditing payroll for the Reel In Technologies company for the year ended October 31, 2016. Included next are amounts from the client's trial balance, along with comparative audited information for the prior year EEB (Click the icon to view the amounts from the trial balance.) (Click the icon to view the additional information.) Requirements a. Use the final balances for the prior year and the information in items 1 through 5 to develop an expected value for each account, except sales. (Round to the nearest whole dollar.) b. Calculate the difference between your expectation and the client's recorded amount as a percentage using the formula (expected value-recorded amountexpected value. (Round to the nearest hundredth percent, X.XX%.) Preliminary Balance Expected Value 10/31/2016 10/31/2016 Executive salaries Factory hourly payroll (see Note 1) Factory supervisors' salaries Office salaries Sales commissions (see Note 2) 629,481 11,100,499 837,567 2,713,957 3,059,893 Enter any number in the edit fields and then click Check Answer Score: 0 of 15 pts 2 of 10 (8 complete) Hw Score: 55%, 55 of 100 pts P7-35 (similar to) Data Table More Info Audited Balance Preliminary Balance 10/31/2015 10/31/2016 'ou have obtained the following information to help you perform preliminary analytical rocedures for the payroll account balances 1. There has been a significant increase in the demand for Reel In's products. The 52,918,457 $ Sales Executive salaries Factory hourly payrol 60,856,226 629,481 11,100,499 837,567 2,713,957 3,059,893 544,881 increase in sales was due to both an increase in the average selling price of seven percent and an increase in units sold that resulted from the increased demand and an increased marketing effort. Even though sales volume increased there was no addition of executives, factory supervisors, or office personnel 10,399,587 Factory supervisors' salaries 759,699 2,239,582 2,305,911 2. Office salaries Sales commissions 3. All employees including executives, but excluding commission salespeople received a six percent salary increase starting November 1, 2015. Commission salespeople receive their increased compensation through the increase in sales "Sales have increased 15% over prior year. 7% percent of that is due to an increase in the average selling price. The remaining 8% is attributed to an increase in the number of units sold . The increased number of factory hourly employees was accomplished by recalling employees that had been laid off. They receive the same wage rate as existing employees. Reel In does not permit overtime Commission salespeople receive a three percent commission on all sales on which a commission is given. Approximately 75 percent of sales earn sales commission. The other 25 percent are "call-ins," for which no commission is given. Commissions are paid in the month following the month they are earned 5. PrintDone Score: 0 of 15 pts 2 of 10 (8 complete) HW Score: 55%, 55 of 100 pts P7-35 (similar to) Question Help You are auditing payroll for the Reel In Technologies company for the year ended October 31, 2016. Included next are amounts from the client's trial balance, along with comparative audited information for the prior year EEB (Click the icon to view the amounts from the trial balance.) (Click the icon to view the additional information.) Requirements a. Use the final balances for the prior year and the information in items 1 through 5 to develop an expected value for each account, except sales. (Round to the nearest whole dollar.) b. Calculate the difference between your expectation and the client's recorded amount as a percentage using the formula (expected value-recorded amountexpected value. (Round to the nearest hundredth percent, X.XX%.) Preliminary Balance Expected Value 10/31/2016 10/31/2016 Executive salaries Factory hourly payroll (see Note 1) Factory supervisors' salaries Office salaries Sales commissions (see Note 2) 629,481 11,100,499 837,567 2,713,957 3,059,893 Enter any number in the edit fields and then click Check Answer Score: 0 of 15 pts 2 of 10 (8 complete) Hw Score: 55%, 55 of 100 pts P7-35 (similar to) Data Table More Info Audited Balance Preliminary Balance 10/31/2015 10/31/2016 'ou have obtained the following information to help you perform preliminary analytical rocedures for the payroll account balances 1. There has been a significant increase in the demand for Reel In's products. The 52,918,457 $ Sales Executive salaries Factory hourly payrol 60,856,226 629,481 11,100,499 837,567 2,713,957 3,059,893 544,881 increase in sales was due to both an increase in the average selling price of seven percent and an increase in units sold that resulted from the increased demand and an increased marketing effort. Even though sales volume increased there was no addition of executives, factory supervisors, or office personnel 10,399,587 Factory supervisors' salaries 759,699 2,239,582 2,305,911 2. Office salaries Sales commissions 3. All employees including executives, but excluding commission salespeople received a six percent salary increase starting November 1, 2015. Commission salespeople receive their increased compensation through the increase in sales "Sales have increased 15% over prior year. 7% percent of that is due to an increase in the average selling price. The remaining 8% is attributed to an increase in the number of units sold . The increased number of factory hourly employees was accomplished by recalling employees that had been laid off. They receive the same wage rate as existing employees. Reel In does not permit overtime Commission salespeople receive a three percent commission on all sales on which a commission is given. Approximately 75 percent of sales earn sales commission. The other 25 percent are "call-ins," for which no commission is given. Commissions are paid in the month following the month they are earned 5. PrintDone