Chapter 3, Problem 4E

Peggy Nolan earns $20 per hour for up to 300 units of production per day. If she produces more than 300 units per day, she will receive an additional piece rate of $.5333 per unit. Assume that her hours worked and pieces finished for the week just ended were as follows:

1. a. Determine Nolan’s earnings for each day and for the week. (Round piece-rate computations to the nearest whole dollar.)
2. b. Prepare the journal entry to distribute the payroll, assuming that any make-up guarantees are charged to Factory Overhead.