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Problem -
1. 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 week's wages each year. Vacation pay and bonuses are treated as direct costs and are accrued over a 50-week work year. A provision in the union contract does not allow these employees to work in excess of 40 hours per week. How much would be charged to Factory Overhead Account?
2. 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 week's wages each year. Vacation pay and bonuses are treated as indirect costs and are accrued over a 50-week work year. A provision in the union contract does not allow these employees to work in excess of 40 hours per week. How much would be charged to Factory Overhead Account?
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