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Marcia Young earns $25 per hour for up to 400 units of production per day. If she produces more than 400 units per day, she will receive an additional piece rate of $0.50 per unit. Assume that her hours worked and pieces finished for the week just ended were as follows:
Day
Hours Worked
units per day
per hour rate
Earnings
Additional rate @ 0.50 per unit
Total earning
Monday
8
400
25
200
Tuesday
380
Wednesday
440
220
420
Thursday
450
225
425
Friday
360
a. Determine Young's earnings for each day and for the week.
b. Prepare the journal entry to distribute the payroll, assuming that any make-up guarantees are charged to Factory Overhead.
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