Question

Black Sheep Printing has 42 employees distributed among the following departments: Sales: 12 Factory: 18 Administration: 12 The total annual payroll for Black Sheep Printing is $882,000. Problem 6-13A (Algo) Required: Compute the labor distribution based on equal distribution among the departments. (Round your answers to 2 decimal places.)

accounting 145

Mcgraw Hill

Answer 1

Solution to the above accounting question:

Total number of employees= 42

Total annual payroll= $882,000

Per Employee payroll cost= $882,000/42= $21,000

Particulars	sales department	factory department	administration department
Number of employees	12	18	12
Annual payroll for each department =Per employee payroll cost* number of employees in that department	$252,000 ($21,000*12)	$378,000 ($21,000*18)	$252,000 ($252,000*12)

Note: Assumption has been taken for labour distribution based on number of employees in each department for equal distribution among the department.