You are auditing payroll for the Tides In 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. (Note 1: When computing the expected value of factory hourly payroll, you must take into consideration both the 7% wage increase and the 3% 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.) (1) Preliminary Balance 10/31/2019 Executive salaries Factory hourly payroll (see Note 1) 666,049 11,697,055 Factory supervisors' salaries 759,699 Office salaries 2,905,881 Sales commissions (see Note 2) 3,399,560 Data table Sales* Executive salaries Factory hourly payroll Factory supervisors' salaries Office salaries Sales commissions Requirement a. (2) Requirement b. [(2)-(1)]/(2) More info Expected Value 10/31/2019 Difference as a Percentage You have obtained the following information to help you perform preliminary analytical procedures for the payroll account balances. Audited Balance 10/31/2018 $ 58,583,900 $ 501,948 Preliminary Balance 10/31/2019 63,856,451 666,049 10,149,586 11,697,055 797,096 759,699 2,405,000 2,905,881 2,798,321 3,399,560 *Sales have increased 9% over prior year. 6% percent of that is due to an increase in the average selling price. The remaining 3% is attributed to an increase in the number of units sold. - % % % % % 1. There has been a significant increase in the demand for Tides In's products. The increase in sales was due to both an increase in the average selling price of 6 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 7 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. Tides In does not permit overtime. 5. Commission salespeople receive a 4 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.