You are auditing payroll for the Sandy Lane Technologies company for the year ended October 31, 2016. Included next are amounts from the clients 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 clients recorded amount as a percentage using the formula (expected value-recorded amount)lexpected value. (Round to the nearest hundredth percent, XXX%.) (Note 1: When computing the expected value of factory hourly payroll, you must take into consideration both the 2% wage increase and the 9% increase in the number of units produced and sold. Note 2: Use the increase in the 10/31/2016 preliminary sales balance over the 10/31/2015 audited sales balance to determine the expected value for sales commissions on 10131/2016.) Requirement a. Requirement b Preliminary Balance 10/31/2016 Expected Value 10/31/2016 Difference as a Executive salaries Factory hourly payroll (see Note 1) Factory supervisors' salaries Office salaries Sales commissions (see Note 2) 629,481 11,597,899 760,800 2,905,881 2,827,321 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 Harbor Creeks products. The increase in sales was due to both an increase in the average selling price of three percent and an increase in units sold that resuited from the increased demand and an increased marketing effort 2. Even though sales volume increased there was no addition of executives Data Table factory supervisors, or office personnel 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. Audited BalancePreliminary Balance 10/31/2015 10/31/2016 4. The increased number of factory hourly employees was accomplished by Sales Executive salaries Factory hourly payroll 58,583,900 S 492,811 10,210,396 690,022 2,003,912 2,829,581 66,785,646 650,381 1,210,049 759,699 2,515,983 2,829,500 recalling employees that had been laid off. They receive the same wage rate as existing employees. Harbor Creek does not permit overtime. Commission salespeople receive a ten percent commission on all sales on which a commission is given. Approximately 65 percent of sales earn sales commission. The other 35 percent are "call-ins,"for which no commission is given earned 5. s are paid in the month following the month they are Factory supervisors' salaries Office salaries Sales commissions "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 You are auditing payroll for the Sandy Lane Technologies company for the year ended October 31, 2016. Included next are amounts from the clients 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 clients recorded amount as a percentage using the formula (expected value-recorded amount)lexpected value. (Round to the nearest hundredth percent, XXX%.) (Note 1: When computing the expected value of factory hourly payroll, you must take into consideration both the 2% wage increase and the 9% increase in the number of units produced and sold. Note 2: Use the increase in the 10/31/2016 preliminary sales balance over the 10/31/2015 audited sales balance to determine the expected value for sales commissions on 10131/2016.) Requirement a. Requirement b Preliminary Balance 10/31/2016 Expected Value 10/31/2016 Difference as a Executive salaries Factory hourly payroll (see Note 1) Factory supervisors' salaries Office salaries Sales commissions (see Note 2) 629,481 11,597,899 760,800 2,905,881 2,827,321 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 Harbor Creeks products. The increase in sales was due to both an increase in the average selling price of three percent and an increase in units sold that resuited from the increased demand and an increased marketing effort 2. Even though sales volume increased there was no addition of executives Data Table factory supervisors, or office personnel 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. Audited BalancePreliminary Balance 10/31/2015 10/31/2016 4. The increased number of factory hourly employees was accomplished by Sales Executive salaries Factory hourly payroll 58,583,900 S 492,811 10,210,396 690,022 2,003,912 2,829,581 66,785,646 650,381 1,210,049 759,699 2,515,983 2,829,500 recalling employees that had been laid off. They receive the same wage rate as existing employees. Harbor Creek does not permit overtime. Commission salespeople receive a ten percent commission on all sales on which a commission is given. Approximately 65 percent of sales earn sales commission. The other 35 percent are "call-ins,"for which no commission is given earned 5. s are paid in the month following the month they are Factory supervisors' salaries Office salaries Sales commissions "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