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Accounting for Labor and Factory OverheadProblem 1:The following employee changes in BSA Mfg

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Accounting for Labor and Factory OverheadProblem 1:The following employee changes in BSA Mfg. Inc. for 2019 are as follows:Employees at the beginning of 2019 1,050 Employees recruited (of which 50 of them replaced those leavers discharged by the management of BSA, while the remainder are due to expansion plans to be made by BSA for future years) 150 Employees left during the year (including the abovementioned employees replaced) 250 Employees at the end of 2019 950 Assume that there is no other information as to the changes in employees, determine the labor turnover based on the following methods (round off your answers to two decimal places expressed in percent):

1.  Separation method

2.  Replacement method

3.  Flux method

Problem 2:

BSA Factory provides for an incentive scheme for its factory workers which features a combined minimum guaranteed wage and a piece rate. Each worker is paid P11.25 per piece with a minimum guaranteed wage of P875 per week. Production report for the week show:

Employee Units Produced

Krista 67

Jose 78

Sophiya 80

Crisia 82

Maye 72

Angelo 75 Determine the amount of the following:

1.  Direct labor

2.  Factory overhead

Problem 3:

Cedy is an employee of NPP Incorporated. He is earning a salary (gross) of P50,000 a month. The following deductions and contributions pertaining to him and his employer are as follows:

  Employee Employer

Withholding tax on compensation P 6,304 -

SSS contributions 800 P 1,600

PhilHealth contributions 550 550

HDMF contributions 100 100

EC contribution - 30

 

Assume that Cedy is a mechanical engineer who operates the machine used in production, prepare journal entries for the following:

1.  Distribution of payroll (no need to set up payroll fund, assume paid)

2.  Accruals of employer's contribution

Problem 4:

The following information of a manufacturing company as regards to additional compensation to its 48 employees are as follows: Number of working weeks 48

Vacation weeks 4

Holidays 10

Annual bonus (for all 48 employees) P592,560

Daily salary per employee P600

The company is entitling all employees with bonus, vacation and holiday pays. Assume that the regular working days per week are 5 days, calculate the following (on a weekly basis):

1.    Vacation pay

2.    Bonus pay

3.    Holiday pay

Problem 5:

BSA Homes produces a variety of household products. The ?rm operates 24 hours per day with three daily work shifts. The ?rst-shift workers receive "regular pay." The second shift receives an 8 percent pay premium, and the third shift receives a 12 percent pay premium. In addition, when production is scheduled on weekends, the ?rm pays an overtime premium of 50 percent (based on the pay rate for ?rst-shift employees). Labor premiums are included in overhead. The October 2019 factory payroll is as follows:

Total wages for October for 32,000 hours P435,600

Normal hourly wage for first-shift employees P12

Total regular hours worked, split evenly among the three shifts 27,000

Answer the following:

1.  How much of the total labor cost should be charged to direct labor?

2.  How much of the total labor cost should be charged to overhead?

3.  Calculate the breakdown of overhead cost as to:     

a.  Second shift premiums

b.  Third shift premiums

c.  Overtime premiums