Problem 1. DICK O. QUILALA and DINA L.

AMAN are workers of DIPAALAM Company who are involve in forming the
parts needed in one of its products. DICK O. QUILALA and DINA L. AMAN received P75 and P80 per hour respectively
during regular hours. DIPAALAM Company pays its employee, time and a half for all the overtime works in excess of the
48 hours per week.
Required: Compute for the Wages allocated to (a) Direct Labor, and Wages allocated to (b) Factory overhead assuming:
1) In a given week, DICK O. QUILALA and DINA L. AMAN works for 50 hours and 53 hours respectively, and that
DICK O. QUILALA is idle for 3 hours.
2) In another week, DICK O. QUILALA and DINA L. AMAN works 52 hours and 51 hours respectively, and that
DINA L. AMAN is idle for 2 hours. Overtime works are due to rush nature of Job.

Problem 2. The Laborer Corporation uses an hourly wage system. The contract provides for a 5-day week, with time and
one half for all work over eight hours in regular working day, double time for Saturday and Sunday. Deductions from
workers earnings are: SSS, Withholding taxes, Philhealth and HDMF at 5%, 20%, 1% and 2% respectively.

The time records for the week show the following information:
Name Card No. Mon Tue Wed Thu Fri Sat Rate
LLL 101 8 8 10 10 8 4 P80
AAA 102 8 8 10 9 8 P60
BBB 103 8 8 10 10 8 P55
OOO 104 8 9 8 10 10 4 P55
RRR 105 10 8 10 10 9 4 P60

An analysis of the job time ticket for the week indicated the following:
Card No. Job No. Mon Tue Wed Thu Fri Sat
101 -----------------------Supervision-----------------------------
102 1 8 4 6 3 -
2 - 3 4 2 2
3 - - - 4 6
103 1 6 6 4 4 2
3 2 - 5 6 4
104 2 5 5 3 2 -
3 2 4 3 7 8 4
105 1 8 6 6 4 -
2 - 2 3 4 8 4
Required: From the forgoing information compute the following:
a. Regular Pay d. Net Pay
b. Overtime Premium e. Direct labor cost charged to each Job
c. Total Deduction f. Indirect Labor cost charged to FOH-C

Problem 3. Management of the Von Machine Company provided you the following information related to payment
scheme of the worker of Product A:
 The hourly rate is P90.00 which calls for standard production per hour of 30 units
 Any production in excess of 240 units in an 8-hr work is paid at P2.5 per unit
 Ten pieces of Part X are required for one unit of Product A. The plant works a 6-day week and an 8-hour day,
totaling 48 hours per week. No overtime premium pay is to be considered in your analysis.
During a selected week, the following pieces of Part X were produced:
Day 1 2 3 4 5 6
Part X Produced 150 200 240 180 300 200
Required:
a) In the given week compute for (1) the total earnings of the employee, and (2) the unit labor cost of Product A.
b) Using the information in Problem 2, except that the employee is paid at P3.00 per unit with a minimum hourly rate
of P65.00. Compute for (1) the total earnings of the employee and (2) the unit labor cost of Product A.