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The employment contract of Mr Bean, an employee at Velebahleke Limited has the following condit ...
The employment contract of Mr Bean, an employee at Velebahleke Limited has the following conditions of service: A normal day is 9 hours, including ninety (90) minutes for tea and lunch breaks; and a normal week is 5 days, Monday to Friday. The basic wage rate is R100 per hour. Public holidays are fully paid and are equivalent to 2 weeks. Leave entitlement is 3 weeks and is also fully paid. Bonus payable is equal to R 12,50 for every unit over and above standard production. Standard production output per hour should equal 6 units. Overtime is 1,5 times the normal rate. Actual information for the week ended 11 April 2023 Mr Bean actually worked 50 hours for the week under review. Number of units he produced for the week under review is 320 units. Required: Calculate the following and choose the correct answer from the options provided: - The annual normal wage that Mr Bean should earn amounts to - Overtime payable to Mr Bean - Number of units Mr Bean should have produced during the week under review (in terms of the hours worked equal - Bonus payable to Mr Bean for the week under review is - The annual expected productive hours
To calculate the required values, let's go step by step:The annual normal wage that Mr Bean should earn:
Mr Bean works 9 hours per day for 5 days a week, which is a total of 45 hours per week.
The basic wage rate is R100 per hour.
Therefore, the weekly wage is 45 hours × R100/hour = R4,500.
The annual wage is the weekly wage multiplied by the number of weeks in a year. the annual wage is R4,500 × 52 = R234,000.ASSUMING AN YEAR HAS 52 WEEKS