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QUESTION 2 (18 marks) Jeenie Carpets (Pty) Ltd is a carpet manufacturer that specialises in making traditional hand-knotted carpets. Carpet weavers are the main wage
QUESTION 2 (18 marks) Jeenie Carpets (Pty) Ltd is a carpet manufacturer that specialises in making traditional hand-knotted carpets. Carpet weavers are the main wage earners at Jeenie Carpets (Pty) Ltd. Roger is a Carpet Weaver. Roger earns a basic wage rate of R80 per hour. He further gets an annual, guaranteed holiday bonus of R5 000 . Jeenie Carpets (Pty) Ltd makes the following contributions: - 15% of the normal wage (including leave days) to the pension fund. - 10% of the normal wage (including leave days) to the medical fund. - An annual UIF contribution of R1 664 per Carpet Weaver. Additional information: - The company operates a 40-hour week (Monday to Friday) for 52 weeks a financial year. - Employees work 5 days a week (Monday to Friday). - Every employee receives 20 days of annual leave. - There are 19 public holidays per financial year. - Idle time makes up 6% of available hours. REQUIRED: Calculate the following regarding Roger: 2.1 Total annual productive hours (5 marks) 2.2 Total annual labour cost (6.5 marks) 2.3 The productive hours labour recovery rate (2.5 marks) 2.4 Prepare the journal entry/entries to account for the employer contributions for the financial year. (4 marks)
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