Management Accounting

QUESTION 3 (20 MARKS) Part A Namibia Body Works (NBW) is a renowned panel beating company based in Windhoek. The business uses sophisticated machinery in the panel beating operations and as a result, the company employ various grade of labour Panel beater S. Slinger is employed as a panel beater at NBW. Due to the nature of his work, he is remunerated on a time based system. The normal working week at NBW is 45 hours. On the first week of May 2021, S. Slinger worked for 50 hours. The company pay an hourly rate of N$30 per hour. Overtime when worked is remunerated at a time and half. The following are his deductions for the week: Social security - 0.9% of normal wages Pension fund -8% of normal wages Income tax - N$315 It is NBW's policy to contribute the same amount as the employees towards the social security fund and pension fund. Spray painter Jaco Manetti is employed as a spray painter at NBW on a contract. Since Jaco is on contract he opted to be paid his wages on a daily basis. As such he is remunerated on a differential piecework system based on the number of panels he sprays on a day. His supervisor is responsible for the allocation of panels to be worked on a particular. The supervisor ensures that the panels allocated would ensure a fair remuneration for Jaco. The following information has been extracted for Jaco for one day in May 2021. Standard time allowed: 20 minutes per panel Standard work day: 9 hours Normal wage rate: N$36 per hour Premium: 90% of piecework rate if below standard 120% of piecework rate if standard or above standard Jaco's production for the day 32 units Workshop supervisor F. Frans is the workshop supervisor of NBW. She is paid a fixed salary monthly of N$10 000. To keep her motivated, she is entitled to an annual bonus of N$9 000. NBW contributes N$9 000 to her pension fund annually. She works 9 hours per day from Monday to Friday every week. She is also entitled to 28 days paid vacation leave. There are 12 public holidays in the year for which 9 fall on weekends. Assume a 365 days year. Marks Required Sub- Total total 3.1 Using only information relating to the panel beater, prepare a pay slip for S. Slinger in as much detail as possible. Using only information relating to the spray painter, calculate the 3.2 4 11 remuneration for Jaco for the day using the differential piecework system. Using only the information relating to the workshop manager, compute 3.3 20 Frans's hourly recovery tariff per hour. Total 20 7 7 9