Question 1

What is the purpose of the following journal entry? DR Payroll
CR FICA Taxes Payable
CR Employee Income Tax Payable
CR Wages Payable

Accepted Answer

A) To record payroll for the period. 
B) To accrue payroll at the end of the period. 
C) To record payroll taxes for the period. 
D) To distribute payroll for the period. 
A) To record payroll for the period. 
B) To accrue payroll at the end of the period. 
C) To record payroll taxes for the period. 
D) To distribute payroll for the period. A

Question 2

Harmony Company has accrued payroll costs of $50,000 for the period May 28 - 31 as follows:   Other Information: (a)The FICA rate is 8% of the first $100,000 of wages.None of the employees has reached this maximum.
(b)The company is responsible for state and federal unemployment taxes on the first $8,000 of wages.All of the employees have previously reached this maximum.
(c)Payroll taxes are spread over all jobs.
What entry would be necessary to accrue payroll taxes for the period of May 28 - 31?

Accepted Answer

A) Factory Overhead 4,000 FICA Tax Payable 4,000 
B) Payroll Tax Expense - Sales 400 Payroll Tax Expense - Administrative 400
Work in Process 3,200
FICA Tax Payable 4,000 
C) Payroll Tax Expense 4,000 FICA Tax Payable 4,000 
D) Payroll Tax Expense - Sales 400 Payroll Tax Expense - Administrative 400
Factory Overhead 3,200
FICA Tax Payable 4,000 
A) Factory Overhead 4,000 FICA Tax Payable 4,000 
B) Payroll Tax Expense - Sales 400 Payroll Tax Expense - Administrative 400
Work in Process 3,200
FICA Tax Payable 4,000 
C) Payroll Tax Expense 4,000 FICA Tax Payable 4,000 
D) Payroll Tax Expense - Sales 400 Payroll Tax Expense - Administrative 400
Factory Overhead 3,200
FICA Tax Payable 4,000 D

Question 3

Wage plans that encourage employees to work harder and earn more by producing a high level of output are known as:

Accepted Answer

A) Contributory plans. 
B) Salary wage plans. 
C) Incentive wage plans. 
D) Hourly-rate plans. 
A) Contributory plans. 
B) Salary wage plans. 
C) Incentive wage plans. 
D) Hourly-rate plans. C

Question 4

Harrison Carter,who is classified as direct labor,earns $800 per week and is entitled to two weeks of vacation and 10 holidays each year.How much should be accrued for his vacation each week?

Accepted Answer

A) $48.00 
B) $50.00 
C) $32.00 
D) $35.68 
A) $48.00 
B) $50.00 
C) $32.00 
D) $35.68

Question 5

Wages of the following personnel would be classified as indirect labor except the:

Accepted Answer

A) painter. 
B) supervisor. 
C) fork lift driver. 
D) plant janitor. 
A) painter. 
B) supervisor. 
C) fork lift driver. 
D) plant janitor.

Question 6

The departmental responsibilities of the payroll function include all of the following except:

Accepted Answer

A) Reviewing the labor hours on the time record for accuracy. 
B) Summarizing the period's payroll data. 
C) Keeping a record of earnings for each employee. 
D) Computing deductions and withholdings for each employee. 
A) Reviewing the labor hours on the time record for accuracy. 
B) Summarizing the period's payroll data. 
C) Keeping a record of earnings for each employee. 
D) Computing deductions and withholdings for each employee.

Question 7

Joel Williams works at Allentown Company where he assembles components for small appliances and earns $16 per hour with "time-an-a-half" for overtime.During the week ended July 25,Joel worked 43 hours as follows:   The amount of Joel's wages that will be charged to Factory Overhead assuming the overtime is due to the random scheduling of jobs is:

Accepted Answer

A) $120 
B) $152 
C) $40 
D) $128 
A) $120 
B) $152 
C) $40 
D) $128

Question 8

A wage plan based solely on an employee's quantity of production is known as a(n):

Accepted Answer

A) Modified wage plan. 
B) Hourly-rate plan. 
C) Incentive wage plan. 
D) Piece-rate plan. 
A) Modified wage plan. 
B) Hourly-rate plan. 
C) Incentive wage plan. 
D) Piece-rate plan.

Question 9

The Tidle Manufacturing Company uses a job order cost system.Factory wages are paid on a straight hourly basis with indirect labor getting $8.50 an hour and direct labor getting $10.00 an hour.
During the week of January 7,the following hours were worked:   Salaries and wages are paid weekly,with administrative salaries totaling $16,500 and salesperson's salaries totaling $12,200.
The following deductions are to be considered:   Prepare journal entries to record: 
a.The payroll.
b.The payment of the payroll.
c.The payroll distribution.
d.The employer's payroll tax expense.

Accepted Answer

@#IMG-DLM& *($107,000 + $7,650)x (8% + 1

Question 10

The Fiesta Royale Corporation payroll for the first week in January was $14,000.The amount of income tax withheld was 20 percent and the FICA,state unemployment,and federal unemployment tax rates were 8 percent,5 percent,and 1 percent,respectively.The amount of the employees' withholding taxes are:

Accepted Answer

A) $4,760. 
B) $3,920. 
C) $2,800. 
D) $5,100. 
A) $4,760. 
B) $3,920. 
C) $2,800. 
D) $5,100.

Question 11

Under a modified wage plan,an employee working an eight-hour day earns $.50 for each finished unit and is guaranteed $20 per hour as a minimum wage.At what level should the daily quota be set?

Accepted Answer

A) 160 units 
B) 320 units 
C) 400 units 
D) 640 units 
A) 160 units 
B) 320 units 
C) 400 units 
D) 640 units

Question 12

Jerrod Sampson is paid $10 an hour for 40 hours a week,with time-and-a-half for overtime and double-time for Sundays and holidays.Overtime premium is charged to Factory Overhead.
Using the labor-time record below:
a.Compute Jerrod's total earnings for the week.
b.Present the journal entry to distribute Jerrod's total earnings.SUTA = 4%,FUTA = 1%,FICA = 8%,FIT = 10%

Accepted Answer

a.Regular Pay $500 (50 hours x $10)
Prem

Question 13

How should idle time be accounted for?

Accepted Answer

A) It should be recorded along with the reason for it,and charged to Factory Overhead. 
B) It should be charged to the job from which the employee took a break. 
C) It should be documented and the employee should not be paid for that time. 
D) It should be allocated to the various manufacturing departments and the supervisors should decide how to handle it. 
A) It should be recorded along with the reason for it,and charged to Factory Overhead. 
B) It should be charged to the job from which the employee took a break. 
C) It should be documented and the employee should not be paid for that time. 
D) It should be allocated to the various manufacturing departments and the supervisors should decide how to handle it.

Question 14

John Elton,who is classified as direct labor,earns $1,000 per week and is entitled to three weeks of vacation and 5 holidays each year.How much should be accrued for his holiday pay each week?

Accepted Answer

A) $21.00 
B) $40.41 
C) $20.41 
D) $1,000.00 
A) $21.00 
B) $40.41 
C) $20.41 
D) $1,000.00

Question 15

At a plant where car doors are manufactured,all of the following would be classified as direct labor except:

Accepted Answer

A) Machinists. 
B) Assembly workers. 
C) Supervisor. 
D) Painters. 
A) Machinists. 
B) Assembly workers. 
C) Supervisor. 
D) Painters.

Question 16

A factory worker earns $500 per week and will receive a $2,000 bonus at year-end,a 2-week paid vacation,and 5 paid holidays.The combined amount of the accruals for bonus,vacation,and holiday pay in the weekly payroll would be:

Accepted Answer

A) $20.00. 
B) $70.00. 
C) $40.00. 
D) None of the above. 
A) $20.00. 
B) $70.00. 
C) $40.00. 
D) None of the above.

Question 17

Under a modified wage plan,an employee earns $1.55 for each finished unit and is guaranteed $18 per hour as a minimum wage.If the daily quota is 96 units,on a particular day when an employee completes 90 units and works 8 hours,the amount of the make-up guarantee will be:

Accepted Answer

A) $18.00 
B) $9.00 
C) $4.50 
D) $13.50 
A) $18.00 
B) $9.00 
C) $4.50 
D) $13.50

Question 18

Jay Vato works at Batwing Industries from midnight until 8:00 AM.His normal wage rate is $17 per hour,while Ben Phillips,who does the same job from 8:00 AM until 4:00 PM makes $15 per hour.Since Ben and Jay have the same seniority within the plant,the difference in pay is due to a(n):

Accepted Answer

A) overtime premium. 
B) production bonus 
C) make-up guarantee. 
D) shift premium. 
A) overtime premium. 
B) production bonus 
C) make-up guarantee. 
D) shift premium.

Question 19

Management of the Robinson Manufacturing Company requests that you calculate the effect of two different wage payment plans upon employee earnings and also on the unit labor cost of Product B12.
The following information is available:   Ten pieces of Part 1567 are required for one unit of Product B12.The plant works a 5-day week and an 8-hour day,totaling 40 hours per week.No overtime premium pay is to be considered in your analysis.
During a selected week,the following pieces of Part 1567 were produced:   An agreement with the union requires a minimum rate of $10.00 per clock hour be paid to employees. 
a.Calculate the labor cost each day of the week for an employee under:
(1)
the hourly-rate plan.(2)
the piece-rate plan.
b.If the company could anticipate a steady production level of 250 units of Part 1567 each day,which plan would you recommend to the company's management? Why?

Accepted Answer

@#IMG-DLM& *8 (hours

Question 20

If the amount of overtime premium is to be charged to all jobs worked on during the period as a result of random scheduling of jobs,the debit will be to:

Accepted Answer

A) Factory Overhead. 
B) Payroll. 
C) Work in Process. 
D) Accrued Payroll. 
A) Factory Overhead. 
B) Payroll. 
C) Work in Process. 
D) Accrued Payroll.

What is the purpose of the following journal entry? DR Payroll CR FICA Taxes Payable CR Employee Income Tax Payable CR Wages Payable

Wage plans that encourage employees to work harder and earn more by producing a high level of output are known as:

Harrison Carter,who is classified as direct labor,earns $800 per week and is entitled to two weeks of vacation and 10 holidays each year.How much should be accrued for his vacation each week?

Wages of the following personnel would be classified as indirect labor except the:

The departmental responsibilities of the payroll function include all of the following except:

A wage plan based solely on an employee's quantity of production is known as a(n):

The Fiesta Royale Corporation payroll for the first week in January was $14,000.The amount of income tax withheld was 20 percent and the FICA,state unemployment,and federal unemployment tax rates were 8 percent,5 percent,and 1 percent,respectively.The amount of the employees' withholding taxes are:

Under a modified wage plan,an employee working an eight-hour day earns $.50 for each finished unit and is guaranteed $20 per hour as a minimum wage.At what level should the daily quota be set?

How should idle time be accounted for?

John Elton,who is classified as direct labor,earns $1,000 per week and is entitled to three weeks of vacation and 5 holidays each year.How much should be accrued for his holiday pay each week?

At a plant where car doors are manufactured,all of the following would be classified as direct labor except:

A factory worker earns $500 per week and will receive a $2,000 bonus at year-end,a 2-week paid vacation,and 5 paid holidays.The combined amount of the accruals for bonus,vacation,and holiday pay in the weekly payroll would be:

Under a modified wage plan,an employee earns $1.55 for each finished unit and is guaranteed $18 per hour as a minimum wage.If the daily quota is 96 units,on a particular day when an employee completes 90 units and works 8 hours,the amount of the make-up guarantee will be:

Jay Vato works at Batwing Industries from midnight until 8:00 AM.His normal wage rate is $17 per hour,while Ben Phillips,who does the same job from 8:00 AM until 4:00 PM makes $15 per hour.Since Ben and Jay have the same seniority within the plant,the difference in pay is due to a(n):

If the amount of overtime premium is to be charged to all jobs worked on during the period as a result of random scheduling of jobs,the debit will be to:

Introduction to Cost Accounting

Accounting for Materials

Accounting for Factory Overhead

Process Cost Accounting--General Procedures

Process Cost Accounting--Additional Procedures

Master Budget and Flexible Budgeting

Standard Cost Accounting--Materials, labor, and Factory Overhead

Cost Accounting for Service Businesses

Cost Analysis for Management Decision Making

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Exam 3: Accounting for Labor

What is the purpose of the following journal entry? DR Payroll CR FICA Taxes Payable CR Employee Income Tax Payable CR Wages Payable

Wage plans that encourage employees to work harder and earn more by producing a high level of output are known as:

Harrison Carter,who is classified as direct labor,earns $800 per week and is entitled to two weeks of vacation and 10 holidays each year.How much should be accrued for his vacation each week?

Wages of the following personnel would be classified as indirect labor except the:

The departmental responsibilities of the payroll function include all of the following except:

A wage plan based solely on an employee's quantity of production is known as a(n):

The Fiesta Royale Corporation payroll for the first week in January was $14,000.The amount of income tax withheld was 20 percent and the FICA,state unemployment,and federal unemployment tax rates were 8 percent,5 percent,and 1 percent,respectively.The amount of the employees' withholding taxes are:

Under a modified wage plan,an employee working an eight-hour day earns $.50 for each finished unit and is guaranteed $20 per hour as a minimum wage.At what level should the daily quota be set?

How should idle time be accounted for?

John Elton,who is classified as direct labor,earns $1,000 per week and is entitled to three weeks of vacation and 5 holidays each year.How much should be accrued for his holiday pay each week?

At a plant where car doors are manufactured,all of the following would be classified as direct labor except:

A factory worker earns $500 per week and will receive a $2,000 bonus at year-end,a 2-week paid vacation,and 5 paid holidays.The combined amount of the accruals for bonus,vacation,and holiday pay in the weekly payroll would be:

Under a modified wage plan,an employee earns $1.55 for each finished unit and is guaranteed $18 per hour as a minimum wage.If the daily quota is 96 units,on a particular day when an employee completes 90 units and works 8 hours,the amount of the make-up guarantee will be:

Jay Vato works at Batwing Industries from midnight until 8:00 AM.His normal wage rate is $17 per hour,while Ben Phillips,who does the same job from 8:00 AM until 4:00 PM makes $15 per hour.Since Ben and Jay have the same seniority within the plant,the difference in pay is due to a(n):

If the amount of overtime premium is to be charged to all jobs worked on during the period as a result of random scheduling of jobs,the debit will be to:

Introduction to Cost Accounting

Accounting for Materials

Accounting for Factory Overhead

Process Cost Accounting--General Procedures

Process Cost Accounting--Additional Procedures

Master Budget and Flexible Budgeting

Standard Cost Accounting--Materials, labor, and Factory Overhead

Cost Accounting for Service Businesses

Cost Analysis for Management Decision Making

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