Cost Accounting Problem: Vacation and Overtime Pay Paul typically works 40 hours

Question

Cost Accounting Problem: Vacation and Overtime Pay

Paul typically works 40 hours/week at $15/hour regular pay and receives four weeks of vacation. This week he worked 50 hours as his employer asked him to work Saturday to take care of the Christmas backlog. Determine the following and answer the five questions below:

1. The amount of vacation to be accrued.

2. The amount of overtime pay Paul would say he has earned.

3 The amount of pay Paul earned.

4. The amount of overtime pay we will determine Paul earned.

5. The account charged for the overtime we paid Paul

Explanation / Answer

Ans 1 Amount of vacation to be accrued 40*5*$15

3000

Ans 2 Overtime earned by Paul is $15*10 hours

$150

Ans 3 Total amount of Pay Paul earned 52 weeks*40*$15+10*$15

$31,350

Ans 4 The amount of employer will determine 4 weeks*40*15+10*$15

    2550

Ans 5 Under Salaries & Wages-Overtime Compensation

Ans 1 Amount of vacation to be accrued 40*5*$15

3000

Ans 2 Overtime earned by Paul is $15*10 hours

$150

Ans 3 Total amount of Pay Paul earned 52 weeks*40*$15+10*$15

$31,350

Ans 4 The amount of employer will determine 4 weeks*40*15+10*$15

    2550

Ans 5 Under Salaries & Wages-Overtime Compensation

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects