Costing and financial Management

QUESTION 2 (23 MARKS) Mr Malan and Mr Edwards are both artisans in a motor manufacturing company. Mr Malan is remunerated at R75 per hour and Mr Edwards at R55 per hour. Both work on average 40 hours per week. The following information is in respect of medical aid and pension fund contributions, by employee and employer, for both employees: Medical aid: 5% of normal wage per week for both employer and employee Pension fund: 8% per week for both employer and employee PAYE: 33% for Mr Edwards and 40% for M. Malan Both contribute 1% per week to the unemployment insurance fund 2 3/5 The two persons worked as follows for the week ending 11 May 20X7: Edwards Malan Hours Hours Monday 5/5/X7 10 10 Tuesday 6/5/X7 10 8 Wednesday 7/5/X7 8 8 Thursday 8/5/X7 9 9 Friday 9/5/X7 8 8 Saturday 10/5/X7 3 0 Sunday 11/5/X7 0 3 Overtime is remunerated as follows: Normal overtime: 1.5 times normal time Sundays and public holidays: twice the normal time REQUIRED a) Calculate the gross wage as well as the net wage payable to both Malan and Edwards (prepare a payroll for the week ending 11 May 2017). (16) b) Calculate made by the company on behalf of both Malan and Edward for the week ending 11 May 20x7. (4) c) Post Malan's individual payroll account in the general journal. (3)