Reference no: EM132561258

The following facts relate to the firm ABC Pty Ltd:

1) the base wage rate for the workers is $12 per hour

2) employees are entitled to four weeks annual leave

3) sick leave entitlement is five days on full pay

4) there are ten public holidays

5) workers compensation insurance is 15% of gross wages

6) payroll tax is 5.25% of gross wages

7) the company contributes an amount equal to 9% of gross wages to the staff superannuation fund.

8) employees work a forty-hour week.

Question a. Calculate the accrual hourly rates to bring to account the cost of all labour-related costs.

Question b. Calculate an hourly composite charge-out rate that will recover all labour costs for the company.