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The forming Department of the ABC Company employs six workers on an 8-hour shif at $12.50 per hour. Factory overhead is $120 per hour. Production for the second week of June shows, Monday, 460 units, Tuesday, 475 units, Wednesday, 492units, Thursday 500 units and Friday, 510 units. The company has recently installed a group 100-percen bonus system with a standard production for the group of 60 units per hour. The bonus is computed for each day. The controller asks that any analysis of the week's production costs.
Problem 1: Prepare a schedule showing earnings in the department the unit labour cost the unit overhead cost the total cost per unit (round unit cost to three decimal places)
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Prepare the general journal entries that should be made in 2010 and 2011 related to the above plan by Paige Candy.
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