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QUESTION 1 [TOTAL MARKS: 30] Newpark Ltd employs 40 workers in its four production departments. They need assistance in calculating labour payments for employees in the week ending the 54 of June 2020. Employees working in Department 1 and Department 2 get paid on an hourly basis. When they work overtime they get paid at time and a half (1.5) for the first 5 hours overtime and double time (2.0) for any hours worked after that. You are provided with the following information regarding hours worked in Department 1 and 2. The standard working week in both departments is 37 hours per week. The basic rate per hour is 10 in Department 1 and 15 in Department 2. Department No of Employees Hours worked per employee. (Week-ending 5/6/2020) Department 1 12 50 Department 2 8 48 Employees in Department 3 and Department 4 get paid on a piecework basis. Workers in Department 3 get paid 40 cent (0.40) per unit that passes through that department. Those working in Department 4 get paid 45 cent (60.45) for every unit that passes through that department, reflecting the more difficult task required in that department. Workers in Departments 3 and 4 can also receive a bonus payment if they produce units at a faster rate than the standard expected time that was agreed between the workers and management. The bonus payment is calculated on the basis of hours saved per employee at a rate of 12 per hour saved. You are provided with the following information regarding output and time taken for Department 3 and 4. Department No of Employees Output Time Taken (Units) per (Hours) per Employee employee 2,000 45 Department 3 14 Department 4 6 1,500 40 You are also provided with standard times per unit (per employee) for Departments 3 and 4. Department Standard Time per unit (per employee) Department 3 2 minutes Department 4 1.5 minutes (a) Calculate the Total Pay (basic and overtime) for Departments 1 and 2 (9 Marks) (6) Calculate the total Basic Pay for employees in Departments 3 and 4. (7 Marks) (e) Calculate any Bonus Payment due to employees in Departments 3 and 4. (7 Marks) (d) Summarise all labour costs for all departments (2 Marks) (d) Explain why you think it is important for organisations to keep complete records of their labour costs. (5 Marks) [End of Question 1]