Exercise 1

1 timekeeping
2 incentive system
3 payroll sheet
4 time ticket
5 Cost accounting phase in labor cost control
6 Earnings records
7 time and motion study
8 clock card
9 daily time report
Financial accounting phase in labor cost
10 control

Exercise 2
1 units = 5 hours
25,000 units x 5 = 125,000 hours

Number of workers = 125,000 hours

160 hours
Number of workers = 782 workers

Budgeted labor cost = 125,000 hours x P 30/hr

Budgeted labor cost = P 3,750,000

Exercise 3

Amount paid to each worker

Worker Monday Tuesday
A 200.00 200.00
B 200.00 242.00
C 200.00 305.00
D 200.00 200.00
E 200.00 221.00
Total labor cost 1,000.00 1,168.00
Divided by: units completed 48 57
Average labor cost per unit for
each day 20.83 20.49

Fixed overhead 800.00 800.00

Divided by: units completed 48 57
Fixed overhead per unit for each
day 16.67 14.04

Exercise 4

Worker Gross Pay Overtime pay Total

L 48 x 30 1,440.00 1,440.00
M 40 x 20 800.00 3 x 25 75.00 875.00
O 50 x 25 1,250.00 1,250.00
P 45 x 20 900.00 900.00
 Q 48 x 28 1,344.00 5 x 35 175.00 1,519.00
R 46 x 20 920.00 920.00
Total 6,654.00 250.00 6,904.00

Worker Job Number

Direct Labor Indirect Idle Overtime
25 26 27 28 Others Total
Cost Labor Cost Time Premium

L 1,440.00 1,440.00
M 320.00 240.00 200.00 760.00 20.00 15.00 80.00 875.00
O 625.00 400.00 175.00 1,200.00 50.00 1,250.00
P 300.00 240.00 220.00 760.00 60.00 80.00 900.00
Q 280.00 560.00 560.00 1,400.00 84.00 35.00 1,519.00
R 420.00 160.00 300.00 880.00 40.00 920.00
1,320.00 1,265.00 1,260.00 1,155.00 5,000.00 1,440.00 254.00 50.00 160.00 6,904.00

Overtime work is due to the seasonal changes in the demand for the product

Work in process 5,000.00

FOH Control 1,904.00
Payroll 6,904.00

Overtime work is due to the rush nature of the job

Work in process 5,050.00

FOH Control 1,854.00
Payroll 6,904.00

Exercise 6
Gross pay computation

Gross pay computation

Worker Regular pay Overtime pay Total
Lucero, Magno 50 x 48 2,400.00 2,400.00
Abe, Mario 30 x 48 1,440.00 5 x 39 195.00 1,635.00
Boni, Carlos 30 x 46 1,380.00 3 x 39 117.00 1,497.00
44 x 30
Pantig, Jose +4*(30*2) 1,560.00 6 x 39 234.00 1,794.00
Tonio Ben 28 x 45 1,260.00 2 x 36.4 72.80 1,332.80
Yasay, Dante 25 x 48 1,200.00 5 x 32.5 162.50 1,362.50
Total 9,240.00 781.30 10,021.30
Payroll Sheet

Regular Overtime Union

Gross Pay W/H Tax SSS Medicare Pag-ibig Total Net Pay Signature
Worker Pay Pay Dues

Lucero, Magno 2,400.00 2,400.00 300.00 400.00 137.50 100.00 50.00 987.50 1,412.50
Abe, Mario 1,440.00 195.00 1,635.00 250.00 280.00 137.50 100.00 50.00 817.50 817.50
Boni, Carlos 1,380.00 117.00 1,497.00 300.00 260.00 137.50 100.00 50.00 847.50 649.50
Pantig, Jose 1,560.00 234.00 1,794.00 320.00 280.00 137.50 100.00 50.00 887.50 906.50
Tonio Ben 1,260.00 72.80 1,332.80 300.00 280.00 137.50 100.00 50.00 867.50 465.30
Yasay, Dante 1,200.00 162.50 1,362.50 250.00 240.00 137.50 100.00 50.00 777.50 585.00
1,740.0
9,240.00 781.30 10,021.30 1,720.00 0 825.00 600.00 300.00 5,185.00 4,836.30

Weekly Job Time Recapitulation

Job Number
Indirect
Idle Total
39 42 45 46 Total DLH Labor Others
Time Hours
Hours
Worker
Lucero, Magno 48 48
Abe, Mario 15 19 7 10 51 2 53
Boni, Carlos 12 17 10 3 42 2 5 49
Pantig, Jose 13 20 20 53 1 54
Tonio Ben 9 10 25 44 3 47
Yasay, Dante 19 12 16 47 2 4 53
Total 59 57 47 74 237 48 10 9 304

Payroll Charges

Worker Job Number

Direct
Indirect Idle Overtime
39 42 45 46 Labor Others Total
Labor Cost Time Premium
Cost

Lucero, Magno 2,400.00 2,400.00

Abe, Mario 450.00 570.00 210.00 300.00 1,530.00 60.00 45 1,635.00
Boni, Carlos 360.00 510.00 300.00 90.00 1,260.00 60.00 27 150.00 1,497.00
Pantig, Jose 390.00 600.00 600.00 1,590.00 30.00 174 1,794.00
Tonio Ben 252.00 280.00 700.00 1,232.00 84.00 16.8 1,332.80
Yasay, Dante 475.00 300.00 400.00 1,175.00 50.00 37.5 100.00 1,362.50
1,675.00 1,632.00 1,390.00 2,090.00 6,787.00 2,400.00 284.00 300.30 250.00 10,021.30

Entries
Payroll 10,021.30
Withholding Tax Payable 1,720.00
SSS Contributions Payable 1,740.00
Philhealth Contributions Payable 825.00
Pag-ibig Contributions Payable 600.00
Union Dues Payable 300.00
Vouchers Payable 4,836.30
Work in Process 6,907.00
Factory Overhead Control 3,114.30
Payroll 10,021.30