You are auditing payroll for the Sandy Lane Technologies company for the year ended October 31, 2019. Included next are amounts from the client's trial balance, along with comparative audited information for the prior year. (Click the icon to view the amounts from the trial balance.) (Click the icon to view the additional information.) Read the requirements. Data table Sales* Executive salaries Factory hourly payroll Factory supervisors' salaries Audited Balance 10/31/2018 $ 59,401,400 $ Preliminary Balance 10/31/2019 67,123,582 581,745 666,049 8,371,149 10,958,864 689,205 829,583 2,239,582 2,805,832 2,503,913 2,827,321 (Note 1: When computing the expected value of factory hourly payroll, you must take into consideration both the 3% 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. (2) Office salaries Sales commissions *Sales have increased 13% over prior year. 2% 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. Requirement b. (1) [(2) -(1)]/(2) Preliminary Balance Expected Value Difference as a 10/31/2019 10/31/2019 Percentage Executive salaries 666,049 % Factory hourly payroll (see Note 1) 10,958,864 % Office salaries Factory supervisors' salaries Sales commissions (see Note 2) 829,583 % 2,805,832 % 2,827,321 % More info You have obtained the following information to help you perform preliminary analytical procedures for the payroll account balances. 1. There has been a significant increase in the demand for Sandy Lane's products. The increase in sales was due to both an increase in the average selling price of 2 percent and an increase in units sold that resulted from the increased demand and an increased marketing effort. 2. Even though sales volume increased, there was no addition of executives, factory supervisors, or office personnel. 3. All employees including executives, but excluding commission salespeople, received a 3 percent salary increase starting November 1, 2018. Commission salespeople receive their increased compensation through the increase in sales. 4. 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. Sandy Lane does not permit overtime. 5. Commission salespeople receive a 6 percent commission on all sales on which a commission is given. Approximately 70 percent of sales earn sales commission. The other 30 percent are "call-ins," for which no commission is given. Commissions are paid in the month following the month they are earned. -