Major Ltd is a company that produces household goods in various departments. It needs to assess whether the hourly recovery tariff has been calculated correctly! The following information is provided for Martina who is an employee of Major Ltd: She works from Monday - Friday (8 hours per day for 5 days). The rate per hour in this company is R75. Holiday bonus equals to 10% of yearly gross salary. The employer makes the following contributions: Pension fund = R1000 per week Medical aid = R400 per week Other contributions = 5 % of yearly gross salary Holiday leave is 3 weeks annually. The company is closed for 10 public holidays and idle time is 5%. Required: Calculate the hourly recovery tariff. Assume that there are 52 weeks in a year. Note: round off all unit costs to TWO decimal places. Show ALL calculations.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question
LABOUR COSTS
Major Ltd is a company that produces household goods in various departments. It needs to assess whether the hourly
recovery tariff has been calculated correctly!
The following information is provided for Martina who is an employee of Major Ltd:
She works from Monday - Friday (8 hours per day for 5 days). The rate per hour in this company is R75. Holiday bonus
equals to 10% of yearly gross salary. The employer makes the following contributions:
Pension fund = R1000 per week
Medical aid = R400 per week
Other contributions = 5 % of yearly gross salary
Holiday leave is 3 weeks annually. The company is closed for 10 public holidays and idle time is 5%.
Required:
Calculate the hourly recovery tariff. Assume that there are 52 weeks in a year. Note: round off all unit costs to TWO
decimal places. Show ALL calculations.
Transcribed Image Text:LABOUR COSTS Major Ltd is a company that produces household goods in various departments. It needs to assess whether the hourly recovery tariff has been calculated correctly! The following information is provided for Martina who is an employee of Major Ltd: She works from Monday - Friday (8 hours per day for 5 days). The rate per hour in this company is R75. Holiday bonus equals to 10% of yearly gross salary. The employer makes the following contributions: Pension fund = R1000 per week Medical aid = R400 per week Other contributions = 5 % of yearly gross salary Holiday leave is 3 weeks annually. The company is closed for 10 public holidays and idle time is 5%. Required: Calculate the hourly recovery tariff. Assume that there are 52 weeks in a year. Note: round off all unit costs to TWO decimal places. Show ALL calculations.
Expert Solution
steps

Step by step

Solved in 2 steps

Blurred answer
Knowledge Booster
Wages and Salaries computation
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education