Question:
Daktari Enterprises Schedule of Earnings and Payroll Taxes for April is as follows:
|
Gross
|
FICA
|
FUTA
|
SUTA
|
Total
|
|
Earnings
|
8%
|
1%
|
4%
|
Taxes
|
|
Non-Factory Employees:
|
|
|
|
|
|
|
Sales
|
$ 10,000
|
$ 800
|
$ 100
|
$ 400
|
$ 1,300
|
|
Administrative
|
7,000
|
560
|
70
|
280
|
910
|
|
17,000
|
1,360
|
170
|
680
|
2,210
|
|
Factory Employees:
|
|
|
|
|
|
|
Direct Labor:
|
|
|
|
|
|
|
Regular
|
80,000
|
6,400
|
800
|
3,200
|
10,400
|
|
Overtime Premium
|
5,000
|
400
|
50
|
200
|
650
|
|
Indirect Labor
|
30,000
|
2,400
|
300
|
1,200
|
3,900
|
|
115,000
|
9,200
|
1,150
|
4,600
|
14,950
|
|
Total
|
$132,000
|
$10,560
|
$1,320
|
$5,280
|
$17,160
|
Assuming overhead is a result of the random scheduling of jobs, the entry to record and distribute the employers payroll taxes would include:
|
a.
|
A debit to Factory Overhead for 14,950.
|
|
b.
|
A debit to FICA Expense of $10,560.
|
|
c.
|
A credit to Payroll of $132,000.
|
|
d.
|
A debit to Work in Process for $11,050.
|