Answer Happy

Question 3 (12 Marks) Two grades of direct labour workers are employed to produce units of Product 1234. There are 40 Grade 1 employees and 20 Grade 2 employees. All employees work a basic week of 40 hours. Grade 1 employees are paid R10 per hour and Grade 2 employees are paid R15 per hour. If employees work any overtime, they are paid at time-and-one-third (a premium of one third over the basic rate). There are also five 'support workers', such as maintenance engineers, who are paid R12 per hour for a basic 40-hour week. During Week 23, the Grade 1 employees and support workers each worked 40 hours, and the Grade 2 employees worked 46 hours. Due to difficulties with some equipment, 250 hours of Grade 1 labour and 100 hours of Grade 2 labour were recorded as idle time in the week. During Week 23, 4,000 units of Product 1234 were manufactured. Required: a) Calculate the direct labour costs and the indirect labour costs in Week 23. b) Calculate the direct labour cost per unit of Product 1234 in Week 23.