LABOUR COSTS - PRACTICE QUESTION Adams, Baloyi and Clayton are employees of Windhoek Central Hospital (WCH) who have a 40-hour work-week. WCH has provided you with the following information for the week in respect of the three employees: Name Position Hours worked Normal rate Adams Nurse 46 N$40 Baloyi Sister Clayton Nursing Manager N$80 N$60 44 43 The following information is available in respect of deductions from their gross remuneration: Income tax 20% Pension 7.5% Medical aid N$50 per person The hospital contributes 7.5% to pension and N$80 for medical aid Overtime is remunerated as follows: A time-and-a-half of the normal rate Twice the basic rate on Sundays and public holidays. Requirement: a) Prepare a payroll with all the detailed information regarding gross wages, deductions and net wages of each employee. (12 marks) b) Analyse the labour cost into direct and indirect labour cost (4 marks) c) Journalise the necessary entries (8 marks) d) Prepare ledger accounts (10 marks)