I am having difficulties trying to figure out the calculation for expected factory payroll. I am not sure what I am doing wrong.
Audited Bal Prelim. Bal.
Sales 58,583,900 63,856,451
Exec. Sal 570,004 609,312
Fact. Payroll 770,600 770,600
Office Sal 2.003,912 2,515,983
Sales Comm 2,503,913 2,660,499
You have obtained the following information to help you perform preliminary analytical procedures for the payroll account balances.
There has been a significant increase in the demand for Sandy Lane
Sandy Lane's products. The increase in sales was due to both an increase in the average selling price of six
six percent and an increase in units sold that resulted from the increased demand and an increased marketing effort.
Even though sales volume increased there was no addition of executives, factory supervisors, or office personnel.
All employees including executives, but excluding commission salespeople, received a seven
seven percent salary increase starting November 1, 2015
2015. Commission salespeople receive their increased compensation through the increase in sales.
The increased number of factory hourly employees was accomplished by recalling employees that had been laid off. They receive the same wage rate as existing employees. Sandy Lane
Sandy Lane does not permit overtime.
Commission salespeople receive a five
five percent commission on all sales on which a commission is given. Approximately 90
90 percent of sales earn sales commission. The other 10
10 percent are "call-ins," for which no commission is given. Commissions are paid in the month following the month they are earned.
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