4. You are the cost accountant for Bayside Constructions, and you have been asked by your boss, Anthony to prepare the costings for labour for a construction job he wishes to tender for. Anthony advises that he plans to allocate ten (10) construction workers to this job, as well as one (1) job site manager. To meet company performance objectives, Anthony advises that the prospective customer requires this job to be completed within six (6) weeks. As such, Anthony has instructed that there will be no idle time allowed for his staff! Anthony also requires that the total cost of labour must not exceed $130,000. You have collated the following payroll information to help you with your analysis: a) The average hourly rate for employee's is $35 per hour. b) Both the construction workers and job site manager work a 40-hour week. c) Leave entitlements as per company policy are: i. Annual leave - four (4) weeks per year ii. Leave loading is paid to employees on annual leave at 17.5% iii. Personal leave - one week iv. Public holidays - 10 working days d) Company policy states that the construction workers are considered direct labour, and assumed to have no idle time, and no overtime. The job site manager is considered indirect labour. e) The company pays 10.5% superannuation guarantee on ordinary times earnings as per the award. f) Company policy states that the company take up an allowance for Workers Compensation equal to 8% on gross wages. Required: a) Calculate the employee hourly rate, including the cost of entitlements and on - costs using the information provided.
4. You are the cost accountant for Bayside Constructions, and you have been asked by your boss, Anthony to prepare the costings for labour for a construction job he wishes to tender for. Anthony advises that he plans to allocate ten (10) construction workers to this job, as well as one (1) job site manager. To meet company performance objectives, Anthony advises that the prospective customer requires this job to be completed within six (6) weeks. As such, Anthony has instructed that there will be no idle time allowed for his staff! Anthony also requires that the total cost of labour must not exceed $130,000. You have collated the following payroll information to help you with your analysis: a) The average hourly rate for employee's is $35 per hour. b) Both the construction workers and job site manager work a 40-hour week. c) Leave entitlements as per company policy are: i. Annual leave - four (4) weeks per year ii. Leave loading is paid to employees on annual leave at 17.5% iii. Personal leave - one week iv. Public holidays - 10 working days d) Company policy states that the construction workers are considered direct labour, and assumed to have no idle time, and no overtime. The job site manager is considered indirect labour. e) The company pays 10.5% superannuation guarantee on ordinary times earnings as per the award. f) Company policy states that the company take up an allowance for Workers Compensation equal to 8% on gross wages. Required: a) Calculate the employee hourly rate, including the cost of entitlements and on - costs using the information provided.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
not use ai please
Transcribed Image Text:4. You are the cost accountant for Bayside Constructions, and you have been asked by your boss, Anthony to prepare the
costings for labour for a construction job he wishes to tender for. Anthony advises that he plans to allocate ten (10)
construction workers to this job, as well as one (1) job site manager. To meet company performance objectives, Anthony
advises that the prospective customer requires this job to be completed within six (6) weeks. As such, Anthony has
instructed that there will be no idle time allowed for his staff! Anthony also requires that the total cost of labour must not
exceed $130,000.
You have collated the following payroll information to help you with your analysis:
a) The average hourly rate for employee's is $35 per hour.
b) Both the construction workers and job site manager work a 40-hour week.
c) Leave entitlements as per company policy are:
i. Annual leave - four (4) weeks per year
ii. Leave loading is paid to employees on annual leave at 17.5%
iii. Personal leave - one week
iv. Public holidays - 10 working days
d) Company policy states that the construction workers are considered direct labour, and assumed to have no idle time,
and no overtime. The job site manager is considered indirect labour.
e) The company pays 10.5% superannuation guarantee on ordinary times earnings as per the award.
f) Company policy states that the company take up an allowance for Workers Compensation equal to 8% on gross
wages.
Required:
a) Calculate the employee hourly rate, including the cost of entitlements and on - costs using the information provided.
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education