IM4.4 Intermediate: Labour cost accounting and recording of journal entries. (a) Identify the costs to a business arising from labour (5 marks) turnover. (b) A company operates a factory which employed 40 direct workers throughout the four-week period just ended. Direct employees were paid at a basic rate of 10.00 per hour for a 38-hour week. Total hours of the direct workers in the four-week period were 6528. Overtime, which is paid at a premium of 35 per cent, is worked in order to meet general production requirements. Employee deductions total 30 per cent of gross wages. 188 hours of direct workers' time were registered as idle. Required: Prepare journal entries to account for the labour costs of direct workers for the period. (7 marks) ACCA Foundation Stage Paper 3