Shades Limited makes eyeglass lenses. The company is preparing its labour cost budget for direct labour employees for the forthcoming year. Twenty (20) production workers are currently employed in the production department. Budgeted production for the forthcoming year is budgeted at 95 000 units (of eyeglass lenses). Each unit of eyeglass lens requires twenty (20) minutes of manual work and ten (10) minutes of machine operating time performed by each worker. The normal wage rate for all production employees is R68 per hour (inclusive both manual and machine operating hours). The duration of the working week is 45 hours (Monday to Friday) and there are 52 weeks in the year. The firm is closed for two weeks in the year and no production takes place during this recess period. There are 12 public holidays per annum and of which two (2) falls on a Sunday. Each employee enjoys a one-hour lunch every working day plus two weeks' vacation pay for the recess period and two weeks' pay as a bonus. Idle time is estimated at 5% of available hours for production.

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The following compulsory deductions are made from the employees' total wages: PAYE.................................................................................................. 18% of taxable wages Pension................................................................................................. 8% of normal wages UIF.............................................................................................. 1% of total gross wage Medical aid.................................................................................... 3% of normal wages

The following contributions are made by the company: Pension......................................................... 14% of normal wages (including vacation pay) UIF............................................................... 1% of total gross wages Medical aid.................................................... 6% of normal wages (including vacation pay)

Should the production time required for the 95 000 units exceed the available time for production, Shade Limited will use the overtime to cover the shortages. Overtime is remunerated at one and half (1,5) times the normal rate.

REQUIRED: Calculate the following

2.2.1 Total annual hours available / budgeted for production, for all twenty (20) employees(4)

2.2.2 The labour recovery rate for one employee(11)

2.2.3 Production time (both manual and machine operating time) required to produce 95 000 units(2)

2.2.4 The anticipated overtime pay for the year, for all twenty (20) employees(2