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%
Sun Mon Tues Wed Thur Fri Sat Total
F28 4 4 4 4 4 4 4 28
M14 3 2 5 6 16
Idle 1 1 4 6
Total 4 8 7 9 8 10 4 50
a. Regular Pay $500 (50 hours x $10)
Premium 70 (4 hours x $10) + (6 hours x $5)
Total earnings $570
b. Work in Process* 440
Factory Overhead** 130
Payroll 570
* Work in Process: (28 hours x $10 ) + (16 hours x $10 ) = $440
** Factory Overhead: (6 hours x $10) + $70 overtime premium = $130
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