Q : 1 Calculate the labour “cost to company” of JP Mthembu for the week ended 13 July 2019. Q : 2 Suppose the expected labour cost of all the employees for the week was R150 000. It is possible that it may be reduced to R130 000 if overtime is avoided but due to productivity issues the cost could increase to R160 000. Calculate the expected labour cost using three-point cost estimating. INFORMATION JP Mthembu is employed by Solar Manufacturers in Project P. The following are his wage details for the week ended 13 July 2019: Hours worked : Sunday - 4hours Monday to Thursday - 8 hours :Friday - 9 hours :Saturday - 5 hours Pension fund: employee’s deduction - 7.5 of normal hours Pension fund: employer’s contribution - 9% of normal wages Unemployment insurance fund: employee’s deduction - 1% of gross wage Unemployment insurance fund: employer’s contribution - 1% of gross wage Remuneration during normal working hours - R150 per hour Normal working week (Monday to Friday) - 8 hours per day Remuneration on Saturdays and overtime from Monday to Friday - 1.5 times the normal rate Remuneration on Sundays - Double the normal rate
Q : 1 Calculate the labour “cost to company” of JP Mthembu for the week ended 13 July 2019.
Q : 2 Suppose the expected labour cost of all the employees for the week was R150 000. It is possible that it may be reduced to R130 000 if overtime is avoided but due to productivity issues the cost could increase to R160 000.
Calculate the expected labour cost using three-point cost estimating.
INFORMATION
JP Mthembu is employed by Solar Manufacturers in Project P. The following are his wage details for the week ended 13 July 2019:
Hours worked : Sunday - 4hours
Monday to Thursday - 8 hours
:Friday - 9 hours
:Saturday - 5 hours
Pension fund: employee’s deduction - 7.5 of normal hours
Pension fund: employer’s contribution - 9% of normal wages
Unemployment insurance fund: employer’s contribution - 1% of gross wage
Remuneration during normal working hours - R150 per hour
Normal working week (Monday to Friday) - 8 hours per day
Remuneration on Saturdays and overtime from Monday to Friday - 1.5 times the normal rate
Remuneration on Sundays - Double the normal rate
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