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Question - The pay stub of Mr. ABC, employee No. 201 who works on the production line, showed the following information for a one month pay period:
Basic Pay
P?
Overtime Pay
Total gross earnings
P31,500
Income tax withheld
SSS premiums withheld
P1,125.00
PHIC withheld
P576.00
HDMF premiums withheld
P100.00
Union Dues
P150.00
Total deductions
Mr. ABC is paid P180 per hour for regular time and received an additional rate of one-half (50%) for any hour in excess of 160 hours worked. Mr. ABC worked a total of 170 hours during the month.
Required -
1. Calculate the overtime premium pay.
2. Compute Mr. ABC's taxable income.
3. What is the total amount chargeable to work in process account?
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