Submitted by: Limense, Princess Kathleen S.
(Solution & Answer included.)
Assignment #1 ANSWER: LETTER A. 2,205
Jose Santos worked 46 hours in one week at a rate of P45 an hour. He is paid one and a half times the
regular rate for hours worked in excess of P40. What is the gross earnings of Jose Santos?
a. P2,205
b. P2,070
c. P2,340
d. P1,800
SOLUTION:
(40hrs*45pesos)+(6hrs*1.5*45pesos)=
1800+405= 2,205
Assignment #2 ANSWER: LETTER A. P1,599.60
The data below pertains to the earnings of Pedro Castro for the week ended June 16
Hours and rate 42 hours worked at P40 an hour
Earnings to date P14
Overtime rate One and a half times the regular rate for hours worked in excess of 40 hours
Withholding tax 3% of gross earnings
SSS contributions 2% of gross earnings
Phil. Health contributions 1% of gross earnings
Pag-Ibig contributions 1% of gross earnings
What is the net pay for Pedro Castro for the week?
a. P1,599.60
b. P13,879.60
c. P1,629.60
d. P13,580
SOLUTION: [(40hrs*40pesos)+(40pesos*1.5*2hrs)]*93%= 1599.6
Assignment #3 ANSWER: LETTER B. P9,900
Mike G, a production employee is paid P180 per hour for a regular work of 40 hours. During the week
ended March 23, Mike G worked 50 hours and earned time and a half for overtime hours.
What is the amount that should be charged to Work in Process account if the overtime premium is
charged to production worked on during the overtime hours?
a. P9,000
b. P9,900
c. P8,900
d. P9,500
SOLUTION: (40hrs*180pesos)+(10hrs*1.5*180pesos)= 9900
Assignment #4 ANSWER: LETTER A. P9,000
Using the same data in No. 3, what is the amount that should be charged to Work in Process account, if
the overtime premium is charged to manufacturing overhead?
a. P9,000
b. P9,900
c. P 8,900
d. P 9,500
SOLUTION: (50hrs*180pesos)= 9000
Assignment #5 ANSWER: LETTER B. 2,016
Four factory workers and a supervisor make a team in the Machining Department. The supervisor earns
P100 per hour, and the combined hourly charge of the four workers is P320. Each employee is entitled
to a 2-week paid vacation and a bonus equal to 4 weeks’ wages each year. Vacation pay and bonuses are
treated as indirect costs and are accrued over the 50 week work year. A provision in the union contract
does not allow these employees to work in excess of 40 hours per week.
What is the amount to be charged to Manufacturing Overhead Control account?
a. P1,344
b. P2,016
c. P20,000
d. P6,720
SOLUTION:
Per Hour
Supervisor 100
Employee 320
Total 420
Vacation= 420 x 80= 33,600/50= 672
Bonus= 420 x 160 = 67,200/50=1,344
Total 33,600+67,200= 100,800/50= 2,016
Assignment #6 ANSWER: LETTER B. 1,344
Using the same data in no. 5, what is the estimated liability for bonus?
a. P0
b. P1,344
c. P6,720
d. P20,160
SOLUTION:
Per Hour
Supervisor 100
Employee 320
Total 420
Vacation= 420 x 80= 33,600/50= 672
Bonus= 420 x 160 = 67,200/50=1,344
Total 33,600+67,200= 100,800/50= 2,016
Assignment #7 ANSWER: LETTER E. 672
Using the same data in no. 5, what is the estimated liability for vacation pay?
a. P0
b. P20,160
c. P1.344
d. P720
e. P672
SOLUTION:
Per Hour
Supervisor 100
Employee 320
Total 420
Vacation= 420 x 80= 33,600/50= 672
Bonus= 420 x 160 = 67,200/50=1,344
Total 33,600+67,200= 100,800/50= 2,016
Assignment #8 ANSWER: LETTER D. 4,320
The pay stub of Jing Guerrero, employee No. 106 who works on the production line, showed the
following for a 2-week pay period:
Gross earnings P4,560
Income tax withheld 611.68
SSS premiums withheld 342
Phil. Health premiums withheld 112.16
Pag-ibig premiums withheld 222
Union dues 44
Jing Guerrero works a regular 40 hours week and is paid P48 per hour regular time, and time and a half
for overtime.
She is also paid an additional P1,092.80 in benefits for the 2 week pay period with regard to the
employer’s contribution to the company’s SSS and Phil. Health premiums.
What is the amount to be charged to Work in Process for employee no. 106 for the 2-week period,
assuming that any overtime work is not traceable to a particular Job order?
a. P6,480
b. P8,880
c. P3,840
d. P4,320
SOLUTION:
Gross earning 4,560
Income tax -611.68
SSS -342
Phil. Health -112.16
Pag-ibig -222
Union dues -44
Net earning 3228.16
Add Payment 1092.8
Total 4320.96
