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Question 2.5 please, thank you very much QUESTION 2 (20 marks) TGF Limited has 61 employees of whom 52 work in production and 9 work

Question 2.5 please, thank you very much

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QUESTION 2 (20 marks) TGF Limited has 61 employees of whom 52 work in production and 9 work in the service departments. The normal hourly rates paid are R24,00 for direct wages and R19,50 for indirect wages. Overtime is payable at 1,5 times the basic rate. The following additional information applies to the latest period: Hours worked: Normal direct ......................................................... Normal indirect ....................................................... Overtime direct ....................................................... Overtime indirect ..................................................... Deductions were as follows: Pension fund contribution .......................................... Medical aid contribution - direct ........................... R14 529,12 - indirect ......................... R3 455,40 UIF ...................................................................... Tax (PAYE) ........................................................... REQUIRED: Calculate the following: 2.1 Total gross wages as per the payroll (before cost allocation) 2.2 Taxable income of direct labour employees 2.3 Net wages of indirect labour employees 2.4 Total overtime premium 2.5 Total amounts allocated to direct and indirect labour costs 25 520 hours 4 430 hours 2 120 hours 380 hours 7.5% of the normal wage 1% of the gross wage 18% of taxable income (5) (3) (5) (3) (3) [20]

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