Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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

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 25 520 hours Normal indirect. 4 430 hours Overtime direct. 2 120 hours Overtime indirect.. 380 hours Deductions were as follows: Pension fund contribution... 7,5% of the normal wage Medical aid contribution - direct R14 529,12 - indirect.... R3 455,40 UIF. 1% of the gross wage Tax (PAYE).. 18% of taxable income REQUIRED: Calculate the following: 2.1 Total gross wages as per the payroll (before cost allocation) (5) 2.2 Taxable income of direct labour employees (3) 2.3 Net wages of indirect labour employees (6) 2.4 Total overtime premium (3) 2.5 Total amounts allocated to direct and indirect labour costs (3) [20]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cost Accounting Principles And Managerial Applications

Authors: Gerald R. Crowningshield

3rd Edition

0395178371, 978-0395178379

More Books

Students also viewed these Accounting questions