Marcia Young earns $25 per hour for up to 400 units of production per day. If she produces more than 400 units per day, she will receive an additional piece rate of $0.50 per unit. Assume that her hours worked and pieces finished for the week just ended were as follows:
|
Day
|
Hours Worked
|
units per day
|
per hour rate
|
Earnings
|
Additional rate @ 0.50 per unit
|
Total earning
|
|
Monday
|
8
|
400
|
25
|
200
|
|
200
|
|
Tuesday
|
8
|
380
|
25
|
200
|
|
200
|
|
Wednesday
|
8
|
440
|
25
|
200
|
220
|
420
|
|
Thursday
|
8
|
450
|
25
|
200
|
225
|
425
|
|
Friday
|
8
|
360
|
25
|
200
|
|
200
|
a. Determine Young's earnings for each day and for the week.
b. Prepare the journal entry to distribute the payroll, assuming that any make-up guarantees are charged to Factory Overhead.