Question $2($Net Wage Calculation$)$

Orlando Laboratories submits the following information for the week:

Notes:

Overtime is remunerated at time and a half of the normal rate.

The following deductions are applicable:

Income tax $22\%$

Pension $,\frac{71}{2}\%$

Medical aid R$125$ per person

The laboratory contributes $\frac{71}{2}\%$ to the pension fund and R$80$ to the medical aid.

Required:

a$.$ Prepare a payroll with all the detailed information regarding gross wages, deductions and

net wages.

b$.$ Analyse the labour cost into direct and indirect labour cost.