There is a $100,000 manufacturing payroll for the month with the following withholding rates: Federal income taxes, 15%; state income taxes, 3%; Social Security, 6.2%; Medicare, 1.45%; pension plan, 1%; and health insurance, 1.5%. Of these amounts, 80% is for direct labor and the rest is for various types of indirect labor. 

(1/3/18) Yellowknife's payroll taxes and fringe benefits rates are as follows: Federal unemployment tax rate, 0.6%; state unemployment tax rate, 2.7%; and a matching percentage for Social Security and Medicare. Fringe benefits include: contribution to pension plan, 2.0%; and contribution to health insurance plan, 3.0%. Assume that all wages paid are subject to the above items and that none of the items are paid during the month. Assume the company treats these taxes and fringe benefits as part of the cost of labor. Round all calculations to the nearest whole dollar.

(1/4/17) Other actual manufacturing overhead costs incurred, all on account, are $36,000. Factory equipment depreciation equals $70,000.

(1/5/18) Raw materials requisitioned equaled $75,000. Raw materials used for Job 14 were $50,000, and for Job 26, $25,000.

(1/6/18) Job 14 incurred $50,000 of direct labor costs, while Job 26 incurred $30,000. The remainder of the factory payroll cost was for various types of indirect labor.

(1/9/18) Manufacturing overhead is allocated using a predetermined rate of $75 per machine hour. Job 14 used 1,000 machine hours in April, while Job 26 used 750 machine hours.

(1/10/18) Job 26 was completed and sold during April. It had a beginning balance in the job cost records of $5,000 in direct materials, $10,000 in direct labor, and 200 machine hours. The job was sold on credit at a 30% markup on cost.

Answer rating: 100% (QA)

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