You are auditing payroll for the DowtonDune Technologies company for the year ended October31, 2019. Included next are amounts from theclient's trialbalance, along with comparative audited information for the prior year.

(Note 1: When computing the expected value of factory hourly payroll, you must take into consideration both the 6% wage increase and the 11% increase in the number of units produced and sold. Note 2: Use the increase in the 10/31/2019 preliminary sales balance over the 10/31/2018 audited sales balance to determine the expected value for sales commissions on 10/31/2019.) Requirement a. Requirement b. (1) 2 [(2) - (1)]/(2) Preliminary Balance Expected Value Difference as a 10/31/2019 10/31/2019 Percentage Executive salaries 609,312 % Factory hourly payroll (see Note 1) 11,697,055 % Factory supervisors' salaries 797,096 % Office salaries 2,404,933 Sales commissions (see Note 2) 3,269,979Data Table X Audited Preliminary Balance Balance 10/31/2018 10/31/2019 Sales* 58,583,900 $ 66,785,646 Executive salaries 581,745 609,312 Factory hourly payroll 10,399,587 11,697,055 Factory supervisors' salaries 729,582 797,096 Office salaries 2,003,912 2,404,933 Sales commissions 2,633,999 3,269,979 *Sales have increased 14% over prior year. 3% percent of that is due to an increase in the average selling price. The remaining 11% is attributed to an increase in the number of units sold. Print Done0 More Info You have obtained the following information to help you perform preliminary analytical procedures for the paymll account balances. 1. There has been a signicant increase in the demand for [iowton [June's products. The increase in sales was due to both an increase in the average selling price of 3 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. All employees including executives, but excluding commission salespeople, received a 6 percent salary increase starting November 1, 2018. Commission salespeople receive their increased compensation through the increase in sales. 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. Dowton Dune does not permit overtime. Commission salespeople receive a 9 percent commission on all sales on which a commission is givenpproximately T5 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