DLSU ACYCST1 ONLINE LEARNING, TERM 3 AY 2019-2020

INSTRUCTOR-LED INDIVIDUAL ACTIVITY: ACCOUNITNG FOR LABOR (ADAPTED)

EXERCISE 1
The pay stub of Mr. Bend, employee No. 101 who works as an assembly line worker, showed the following
information for a one month pay period:

Basic Pay P?
Regular Pay P?
Overtime premium pay P900
Total gross earnings P31,500
Income tax withheld P?
SSS premiums withheld P800.00
PHIC withheld P?
HDMF premiums withheld P?
Union Dues P150.00
Total deductions P?

Mr. Bend is paid P180 per hour for regular time and received an additional overtime premium rate for any
hour in excess of 160 hours worked. Mr. Bend worked a total of 170 hours during the month.

Calculate the following for Mr. Bend:

1. Total regular earnings.
2. Overtime premium rate.
3. Total deductions to compute the taxable income.

EXERCISE 2
RR is a minimum wage earner and employed by JRL Company. JRL’s employees are engaged at their
workstations for a normal 40-hour week. RR is paid P67.125 per hour. Last week he worked a total of 43
hours assembling one of the company’s product due to material shortages. Any overtime premium is paid
P33.5625 per overtime hour.

Required:
1. Calculate the total overtime pay.
2. How much is the total direct cost?

EXERCISE 3
BETA Company had the following employees and the payroll data made from time ticket for the month
ended, December 31 pertaining to Job#20:

Employees Overtime Basic Union

Name hours Pay Dues
AA 8 P28,000 100
BB 20 P18,400 100
CC 32 P17,920 100

All employees completed the 160 hours per month plus overtime hours. All employees received additional
rate of one half (50%) for overtime hours based on the regular rate. Also, all employees are subject to
mandatory deductions.

Deleon, Jr. M., & Deleon, N. (2016). Cost Accounting, (2016 ed.). GIC Enterprises & Co., Inc., Manila, Philippines.
Guerrero, P. (2018). Cost Accounting: Principles and Procedural Application, (2018 ed.). GIC Enterprises & Co., Inc., Manila, Philippines.
th
Horngren, C., Datar, S. & Rajan, M. (2015). Cost Accounting: A Managerial Emphasis, (15 ed.). Pearson Education, Inc.
DLSU ACYCST1 ONLINE LEARNING, TERM 3 AY 2019-2020

INSTRUCTOR-LED INDIVIDUAL ACTIVITY: ACCOUNITNG FOR LABOR (ADAPTED)

Required:
1. How much is chargeable to Work in Process account?
2. How much is the total employers’ contribution?
3. How much is the total employees’ taxable income?

EXERCISE 4
JC is employed by LJ Company. Last week he worked 34 hours assembling one of the company’s products
and was idle 6 hours due to material shortages. LJ’s employees are engaged at their workstations for a
normal 40-hour week. JC is paid P64 per hour. Any overtime premium is P16 per overtime hour.

Calculate the following:

1. Direct labor cost.
2. Indirect labor cost.

EXERCISE 5
JOE Company had the following employees and the incomplete payroll data made from time ticket for the
month ended April 30 pertaining to Job #003:

Overtime
Employees Rate per Regular Total
Premium
Name hour Pay Earnings
Pay
A 100 ? P400 ?
B 115 P19,550 ? 20,125
C 120 21,000 ? ?

All employees completed the 160 hours per month plus overtime hours. All employees received an
additional rate of one half (50%) for overtime hours based on the regular rate.

Required:
1. How much is the total earnings of employee A?
2. Calculate the total overtime hours worked of all employees.
3. How much is the overtime premium pay of employee C?

Deleon, Jr. M., & Deleon, N. (2016). Cost Accounting, (2016 ed.). GIC Enterprises & Co., Inc., Manila, Philippines.
Guerrero, P. (2018). Cost Accounting: Principles and Procedural Application, (2018 ed.). GIC Enterprises & Co., Inc., Manila, Philippines.
th
Horngren, C., Datar, S. & Rajan, M. (2015). Cost Accounting: A Managerial Emphasis, (15 ed.). Pearson Education, Inc.