Labour cost - Revision 03 Twelve production employees at the McGregor Biscult Company (MBC) are paid a basic wage of 8.00 per hour plus overtime, as follows: Monday to Friday up to 37 hours 8.00 per hour (basic rate) Monday to Friday over 37 hours Time plus a quarter Saturdays Time plus a hall Sundays and Bank Holidays Double time In addition to this they each receive a fixed bonus of 10 each time weekly production exceeds 400.000 units. MBC company policy is to treat all bonuses and overtime premium as indirect labour costs During the year ended 31 March 2008: 21.200 hours were worked at basic rate. 820 hours weekday overtime were worked. Every Saturday morning four people worked from 8am until 12 noon (assume 52 week year) 6 employees came in one Sunday and worked from 10am until 4pm cleaning up after a flood The weekly bonus target was exceeded on seven occasions. Required: (a) Calculate cach of the following payroll costs for MBC for the year ended 31 March 2008 0 Total basic pay (1 mark) m) Total overtime (10 marks) Total production bonuses paid (4 marks) () Total posted to the accounts as direct labour (2 marks) ) Total posted to the accounts as indirect labour (2 marks) (b) Describe the types of documents that could be used to record labour hours and costs. (6 marks) (Total 25 marks)